The Small Business Administration (SBA) announced that it will be ready for the Paycheck Protection Program Loan to reopen the week of January 11th, with all lenders able to submit applications shortly after that. Borrowers who already received a PPP Loan with Liberty SBF and have pre-registered through our online portal are receiving calls from our loan specialists to get them ready for funding.
Second Draw of PPP Ready to Reopen
The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021, and allows borrowers to apply for a Second Draw PPP Loan. Many businesses who already received a PPP Loan will be eligible for a second draw. Those small business owners who missed out on PPP Loans the first time can still get a first draw loan in this next round.
Current referral partners are already telling Liberty SBF that their clients are all understandably anxious while waiting for the new round of funding. The Covid-19 pandemic continues to stifle the wider economy and small business owners desperately need this capital to maintain payroll and protect their future and their employees’ jobs. They do not want to miss out.
Click here to learn more about referring PPP Loans to Liberty SBF.
The SBA says that the Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most. The new act 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.
As a non-bank lender with over 10-years of experience providing capital at a low cost to small business owners, Liberty SBF facilitated over 3,200 loans in the sum of more than $350 million in the last round of PPP lending. Since then, the company has invested in its PPP technology and built a secure, customized portal to process loan forgiveness for those customers. In addition, Liberty SBF has relaunched SBAPAYCHECK.com, already a leading source of news and information about PPP, and a web application for small business borrowers to apply for new Paycheck Protection Program relief funding.
Ready to refer PPP Loans to Liberty SBF? Click here to get started.
Key PPP updates include:
- PPP borrowers can set their PPP loan coverage period to 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, and 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 SBAPAYCHECK.COM
Paycheck Protection Program Second Draw funds are on a first come, first served basis so Liberty SBF strongly encourages referral sources to pre-register clients for a new PPP loan by clicking here.