Small Business Administration Re-Opens Paycheck Protection Program In Tewksbury Town

Press release from the Town of Tewksbury:

January 15, 2021

On Monday, the U.S. Small Business Administration (SBA) re-opened the Paycheck Protection Program (PPP) loan portal.

Businesses can apply for a First Draw PPP Loan until March 31st. A First Draw PPP loan is for those borrowers who have yet to receive a PPP loan before the program closed in August 2020.

Interested businesses can visit SBA Lender Match online to be matched with a participating PPP lender.

PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

PPP access during this round is at first being given exclusively to community financial institutions (CFIs) including Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries. Additional lenders will be able to submit First and Second draw PPP loan applications this week.

As of this week, participating CFIs may begin submitting application information to SBA for Second Draw PPP loans. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts. At least $15 billion is set aside for additional PPP lending by CFIs.

Updated PPP Lender forms, guidance, and resources are available online at SBA.gov/PPP.

This press release was produced by the Town of Tewksbury. The views expressed here are the author’s own.