PPP Rules Updated as New Loans Have Begun
The Small Business Administration and U.S. Treasury Department have released new regulations on the expanded Paycheck Protection Program (PPP) as amended through the $900 billion coronavirus relief package that was enacted into law at the end of December.
In a subsequent announcement on Jan. 8, the agencies announced the SBA’s plans to reopen its forgivable PPP loan program on Jan. 11 and allow certain existing borrowers to apply for a second loan beginning Jan. 13.
The Treasury press release said that initially only community financial institutions, which include banks and credit unions that lend in low-income communities, will be able to initiate new PPP loan applications. The PPP will be open to all participating lenders shortly thereafter.