The Small Business Administration is reopening the Paycheck Protection Program to more lenders on Friday, with the second iteration of the popular program started up earlier this week.
All financial institutions with $1 billion or less in assets can reopen their PPP lending programs on Friday.
Lenders with larger assets can do so on Tuesday.
“The second round of PPP could not have come at a better time, and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continuing weathering this time of uncertainty,” SBA Administrator Jovita Carranza said in a statement.
Small community lenders started accepting applications earlier this week as a means to ensure that the smallest businesses were able to apply for the relief they need.
Borrowers will be able to apply for a loan through the end of March.
A December relief bill allocated $284 billion for additional loans, though the qualification terms were modified slightly for second draw loans.
Eligible businesses must have 300 employees or fewer, and must be able to show a 25% decline in revenues between the final quarter of last year and the same period in 2020.
Loans can be distributed to a maximum amount of $2 million, or 2.5 times average monthly 2019 or 2020 payroll costs. To achieve forgiveness, at least 60% of the money must be put toward payroll expenses, while the rest can go toward rent, mortgage interest and utilities.
The good news for recipients is that those who have their loans forgiven can claim tax breaks on deductible expenses this time around.
First Draw loans will also be available to borrowers who did not receive money before Aug. 8, 2020.