The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, re-opened the Paycheck Protection Program (PPP) loan portal. Additionally, the SBA has issued guidance on “first-draw” PPP loans for first-time borrowers and “second-draw” PPP loans for repeat borrowers.
Changes from the prior PPP rules include new eligibility for 501(c)(6) organizations, more flexibility for borrowers in choosing a covered period, expanded list of eligible loan expenses, and the ability to take out a second loan up to $2 million under certain criteria.
The SBA will accept “first-draw” PPP loan applications from community financial institutions, including Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries. The PPP will open to all participating lenders shortly after its rollout to community financial institutions, according to the SBA.
In an email to members, the National Lumber and Building Material Dealers Association (NLBMDA) provided a summary of both the first-draw and second-draw guidance documents.