Paycheck Protection Program Re-Opens
The Unites States Small Business Administration (SBA) announced that the the Paycheck Protection Program (PPP) is re-open. According to the SBA’s Press Release, "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."
Starting today, Monday, January 11, 2020, businesses that did not receive a loan during the first round of the PPP will be eligible to apply for a First Draw PPP Loan at participating Community Development Financial Institutions (CDFIs). On Wednesday, January 13, certain businesses that have already received a PPP loan through the first round will be eligible to apply for a Second Draw PPP Loan through a participating CDFI. Shortly thereafter, the PPP will open for applications through all participating lenders, including traditional banks.
As a reminder, businesses apply for Paycheck Protection Program loans through a bank, credit union, CDFI or other lender. As indicated above, initially businesses will only be able to use CDFIs to receive loans in order to promote access to capital. For a list of Illinois CDFIs, click here. Please note that some CDFIs may not be participating in the program- please contact your preferred lender to determine if they are participating. The program will then open up to all participating lenders, including traditional banks, at a later date- we will share information about that as soon as it is announced by the SBA.
While BACP does not manage the Paycheck Protection Program, we will be sharing information regularly in the coming weeks and months in order to make sure that all Chicago businesses have access to these essential funds. We will be holding webinars in the coming weeks- more information will be coming soon.
To learn more about the PPP, please visit these links: