PPP & EIDL Loans: What You Need to Know!

Congress renewed the PPP loan program on December 27th, and during the week of January 11th the program will reboot specifically for community financial institutions, followed by second-drawers on the 13th, and finally opening to all sometime in March. PPP loans have been a lifeline for many businesses, and we want the CleanTech Community to be prepared to take advantage of this opportunity so here’s what you need to know!

1. You can apply for both a PPP loan and an EIDL loan

Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for the same purpose.

2. If you already received a PPP loan, you can apply again

For the first time, businesses that have previously received a PPP loan can apply again for up to $2 million. There are some additional requirements to observe.

3. First or Second-Drawers can have their loans forgiven in certain circumstances

Borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.

4. Minority and women-owned businesses will get first bid on new PPP loans

Community lenders serving minority and women-owned businesses will have exclusive access to a new pot of Paycheck Protection Program loans for at least two days when the next round of money becomes available, according to new rules from the Small Businesses Administration.

5. Loans for borrowers in bankruptcy are now permitted in most cases

This is one of the bigger changes from earlier loan programs and is sure to help some of those who have been hit the hardest or were unable to receive aid during the previous, very competitive application windows.