SBA and Treasury Announce PPP Re-Opening
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
LEDC’s PPP application portal is now live! You can access it here:
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The new guidance released includes:
- PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
- Interim Final Rule on Second Draw PPP Loans.
BGE Energizing Small Business Grants Program
On January 20, BGE will launch its Energizing Small Business Grants Program as part of its $15 million pledge to assist small businesses with COVID-19 relief and recovery. This is a component of BGE’s comprehensive Customer Relief and Energy Infrastructure Investment Plan, designed to help the state’s economic recovery from the COVID-19 pandemic.
Through the BGE Energizing Small Business Grants Program, eligible businesses located in BGE’s service area will have three opportunities to apply for grants of up to $20,000:
- Round 1: January 20 – March 3, 2021
- Round 2: May 5 – June 16, 2021
- Round 3: September 1 – October 13, 2021
To be eligible, a business must have between two and 25 employees, less than $7 million in annual revenue, a demonstrated need for support, a strong plan for moving forward, and be in good standing with the state of Maryland.
For more information contact Allyson Black, Manager, State Affairs and Economic Development, BGE Allyson.Black@bge.com 410.269.5286