The SBA and Treasury Department Prepare to Revive PPP

Saturday, January 9th, 2021 -- 8:22 AM

The Small Business Administration and the Treasury Department are preparing to revive the PPP five months after its first two rounds of funding ended.

In the latest round, businesses that received loans last year will be able to borrow up to $2 million as long as they have no more than 300 employees and suffered at least a 25% drop in quarterly revenue. First-time borrowers with no more than 500 workers will be able to borrow up to $10 million.  The loans, which can be forgiven, will have five-year terms and carry an interest rate of 1%. 

The SBA will initially accept only applications submitted by community financial institutions, or CFIs, lenders whose customers are minority-owned and economically disadvantaged businesses. Starting Monday, applications for first-time borrowers submitted by these lenders will be accepted, and on Wednesday, applications for second loans.

The SBA said it would begin accepting applications from all its lenders within a few days of that initial period reserved for CFIs. (AP)

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