Trending: Next round of the Payroll Protection Program gets underway on Monday


The  Small Business Administration (SBA),  will reopen the Payroll Protection Program on the week of Jan. 11 for new borrowers and some existing PPP borrowers.

Only community financial institutions will be able to make First Draw PPP Loans on Monday, Jan. 11, and Second Draw PPP Loans on Wed., January 13.  The PPP will open to all participating lenders shortly thereafter.

Changes have been made to allow other financial institutions to issue PPPs, which can be forgiven if certain  requirements  are meet.

This round of the PPP authorizes  up to $284 billion toward job retention and certain other expenses through March 31, 2021, and allows certain existing PPP borrowers to apply for a Second Draw PPP Loan, an SBA release stated.

Click on headline below for a list of the 200 largest PPP loans in Delaware.


Trending: The 200 largest Delaware Payroll Protection Program recipients

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” stated Administrator Jovita Carranza.  “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” stated Treasury Secretary Steven T. Mnuchin.  “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19.  We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Updates, according to the SBA  include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between eight 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, destination 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.

The first round of the  PPP program, while credited with saving jobs, was broadly criticized for favoring larger businesses, with minority-owned enterprises often excluded or getting minimal funding.

Also  struggling to get PPP  were businesses, such as family owned restaurants and small retailer that have faced occupancy restrictions and skittish customers during the pandemic. Larger restaurant groups, with banking  relationships,  fared better.

Requirements were later revised after larger companies circumvented small business requirements by applying through smaller corporate entities. Policies were later tightened and some larger businesses, such as Shake Shack, returned the money.

Banks, then and now,  will first process existing customers. The PPP differs from other SBA programs, since financial institutions actually process the applications. The list of processors has  since been expanded to include online-focused lenders and other non-traditional sources.

There have also been concerns over fraud, since some of the safeguards that come with loan programs were streamlined in an effort to immediately aid businesses

Below are links to guidance: