Paycheck Protection Program reopens Monday for some borrowers
SIOUX FALLS, S.D. (Dakota News Now) - The Small Business Administration announced last week, the Paycheck Protection Program will reopen Monday for some borrowers. It opened Monday at 8 AM to what’s being referred to as First Draw PPP borrowers. This includes anyone who didn’t get in on the first round of PPP last year between April and August.
The program will only open to a select few community financial institutions, minority depository institutions, community development corporations, and microlenders. Banks that most people go to in South Dakota will open the program for their clients later this week or next week. People applying for a loan for a second time through this program can begin applying Wednesday. They’re being referred to as Second Draw PPP loans. Jaime Wood with South Dakota’s Small Business Administration said the office doesn’t know exactly when the program will completely open to all financial institutions.
In the meantime, if people aren’t part of the First Draw, they can get with their lender and complete an application. The lender can put it in the queue, then it can be submitted right away when the time is right.
The program’s eligibility has expanded to include housing cooperatives, destination marketing organizations, and 501(c)(6)s. A borrower is generally eligible for a Second Draw PPP loan if the borrower:
-Previously received a First Draw PPP loan and has used the full amount for authorized uses
-Has no more than 300 employees
-Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Wood said financial assistance for community theaters and live entertainment venues is also coming soon. Her office is waiting on additional guidance from SBA headquarters on the “Save the Stage” disaster response.
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