The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced Friday (January 10, 2021) that the Paycheck Protection Program (PPP-2) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. (The following information was prepared by the SBA.)

Guidelines from the SBA and Treasury Deartment

  • 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.
  • “The Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA Administrator Jovita Carranza.  “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs. This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19.  We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Treasury Secretary Steven T. Mnuchin 

Key PPP updates

  • 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, destination 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
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

When is a borrower generally eligible for a Second Draw PPP Loan?

  • When the borrower reviously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
  • When the borrower has no more than 300 employees
  • When the borrower can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

Additional guidance links

For more information visit or

This resource was prepared and distributed by the US SBA with assistance of the U.S. Department of Treasury. Always seek the guidance of a trusted financial advisor when borrowing money or making financial decisions related to your business.

Credit: stockstudioX via GettyImages

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