Disclaimer: This information was correct at the time of publication; however, new guidance from government agencies may be issued at any time, causing some or all of this information to change. Please visit our COVID-19 Business Strategy Hub for the latest news and ensure you are subscribed here to receive email alerts as they are released. We are working diligently to provide the most current information as it becomes available under our COVID-19 Actionable Insights For Businesses Series.
The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) will officially reopen today, January 11, 2021. On this date, the SBA will only begin accepting loans for small businesses that have not yet received a PPP loan, also referred to as a ‘first-draw’ loan. It will also only accept applications from lenders who are identified as ‘community financial institutions’ (CFIs).
These CFIs are defined as Community Development Financial Institutions, minority deposit institutions, certified development companies and microloan intermediaries. For all businesses applying for a second PPP loan, also referred to as a ‘second-draw’ loan, applications will open on January 13, 2021. However, these second-draw loans will only be available through CFIs.
The SBA has said that the PPP will open up to all participating lenders ‘shortly thereafter,’ but there is not an exact date for when it will extend beyond CFIs. The PPP program is set to run through March 31, 2021.
The PPP extension was rolled out as part of the Consolidated Appropriations Act (CAA), a $900 billion COVID-19 relief bill. To read more about the highlights of this bill and the criteria for the PPP, please review our recent blog post: Breaking News: COVID-19 Relief Bill Just Passed Making PPP Loan Related Expenses Deductible and Providing a 2nd Round of PPP Loans.
After announcing the opening date for the PPP, the SBA released PPP application forms on January 8, 2021. The forms include Form 2483 – Paycheck Protection Program Borrower Application Form and Form 2483-SD – PPP Second Draw Borrower Application Form. Form 2483 has been updated from previous versions that started with the original PPP program. Form 2483-SD is a new form that allows qualified borrowers to request a second-draw PPP loan.
Other helpful forms released by the SBA on January 8, 2021, include:
- Top-Line Overview of First Draw PPP Loans
- Top-Line Overview of Second Draw PPP Loans
- Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only)
- Procedural Notice – SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement
The Moore Colson team will be hosting a webinar tomorrow, January 12, 2021, from 2-3 pm ET, to assist you in understanding how the CAA will impact you and your business. We will cover all recent items tied to the PPP, including the SBA guidance that was released last week. If you are interested in joining our webinar, please register here: Webinar: Consolidated Appropriations Act, 2021 – What your Business Needs to Know.
If you need assistance applying for a first- or second-draw PPP loan or calculating for PPP loan forgiveness, the Moore Colson team is here to help. Click here to contact us.
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.
Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.