The popular Paycheck Protection Program, which provides forgivable loans to small businesses to keep them afloat during the pandemic, will reopen today with a few changes as the federal government attempts to better target the money to underserved, smaller businesses that need it most, Forbes reports.
Here’s some key facts to note about the new round of funding:
• The Small Business Administration will restrict lending today and Tuesday, the first two days of the program, to community-based lenders like CDFIs making loans to first-time borrowers.
• That restriction follows criticism that businesses with strong banking relationships and more resources were more easily able to access money from the first round of the program than were their smaller, less-resourced peers.
• On Wednesday, the program will open up to second-time borrowers that can demonstrate losses of at least 25% between 2019 and 2020 and that have 300 employees or fewer.
• The SBA says that larger lenders will be able to begin making loans under the updated program “shortly” after Wednesday, Jan. 13, but did not specify an exact date.
• This new round of the PPP will be open through March 31.