PPP funding deadline is extended to May 31

Updated April 1, 2021

BUSINESSES --- please check out the wrangellcovid19.org website for all Wrangell COVID information. Some of this information is now located on that page as well.

Federal Financial Assistance

Paycheck Protection Program (PPP) NEW changes to the PPP prioritizing Self Employed and Sole Proprietors. DEADLINE EXTENDED TO MAY 31, 2021

Beginning on Wednesday, Feb. 24 through Wednesday, March 10, the Small Business Administration (SBA) will exclusively offer PPP loans to small businesses, nonprofits and sole proprietors with less than 20 employees. Then it will open up to the broader spectrum of applicants.

The most recent PPP updates:

Establishes a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
Child care providers are eligible
These changes are to further reach women-owned, minority-owned, and low-income, rural, and underserved businesses and communities in a more intentional way
For businesses with fewer than 10 employees, the share of funding is up nearly 60%
For businesses in rural communities, the share of funding is up nearly 30%

The Paycheck Protection Program is a forgivable loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Please contact your financial institution.

The U.S. Treasury has published a new interim final rule authorizing a reopening of the Small Business Administration Paycheck Protection Program (PPP) (document is below). New guidelines to assist the very small businesses and non-profits went into effect on February 24, 2021.

The January 2021 round of the PPP prioritized 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.

PPP guidelines:

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.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares.