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Paycheck Protection Program is now accepting applications from small businesses

Posted at 11:28 PM, Jan 12, 2021
and last updated 2021-01-13 08:24:35-05

IDAHO — The Paycheck Protection Program (PPP) has reopened, and the U.S. Small Business Administration said this new round would be easier to access for business owners in underserved and disadvantaged communities.

"They are starting with community financial institutions and minority depository institutions. (It) started on Monday, and they can submit applications. We will find out later in the week when the rest of the financial institutions when they will submit applications," Gary Eisenbraun, a director of Small Business Administration Boise district office.

Eisenbraun said two lenders would be able to accept applications for the moment.

"The lender is MoFi on the eastern part of the state A10 both of them cover all of Idaho and they are taking applications,"Eisenbraun said.

The latest COVID-19 relief package included more than $284 billion to support small businesses.

According to SBA, PPP loans could be used in payroll costs, including benefits, paying the mortgage interest, rent, or utilities. This new round of PPP also comes with updates:

  • PPP borrowers can set their PPP loan's covered period to be any length between 8 and 24 weeks to meet their business needs best;
  • 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.

The loans will be available through March 31.

"Small businesses really drive, are the economic engine for commerce in the United States, and small businesses are very critical to our economy. It's important that we keep our dollars flowing and keeps businesses open," Eisenbraun said.