UPDATE: Small Business Administration Paycheck Protection Program

The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers.  This round of the PPP will continue to be processed through participating financial institutions and will be available through March 31, 2021.  This round will authorize up to $284 billion.  This round is open to both First Draw PPP Loans and a Second Draw PPP Loan.  In general, a First Draw PPP loan is for eligible borrowers who did not receive a PPP loan before the program closed in August 2020. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan and used the full amount of their First Draw PPP loan on authorized expenses, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts.

Starting on Wednesday, 2/24/21 and running for 14 days, only businesses with fewer than 20 employees can apply for relief through the program.  This exclusive application period will allow lenders to focus on serving the smallest businesses.  These businesses often struggle more than larger businesses to collect the necessary paperwork and secure relief from a lender.  This will also ensure that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31,2021.

SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before. While these changes are being implemented, SBA will work with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA will strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. SBA will:

  • Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
  • Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
  • Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
  • Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

DCEO teams are continuing to host webinars throughout March on this program. Webinars will cover technical assistance and questions related to the PPP application, as well as provide informational resources for businesses seeking assistance on EIDL, upcoming SVO grant programs, and other resources tailored to small businesses. For a list of upcoming webinars on PPP and other programs, please visit DCEO’s page.   Below are some upcoming webinars next week hosted by Team RED and their registration links.

Date:  Thursday, March 4, 2021

Time:  10:00 am

Presenter:  Joe McKeown, Northeast Region Senior Account Manager, Illinois Department of Commerce and Economic Opportunity with special guest Stephen Konkle from the SBA

Registration Link: https://illinois.webex.com/illinois/onstage/g.php?MTID=eea46849f5743d3b5799369bed264f16f

 

Date:  Friday, March 5, 2021

Time:  10:00 am

Presenter:  Lee Trotter, Northwest Region Account Manager of Regional Economic Development, Illinois Department of Commerce and Economic Opportunity

Registration Link: https://illinois.webex.com/illinois/onstage/g.php?MTID=e0e0b5e10f105421501fac1d7e62ccbb8

 

Date:  Friday, March 5, 2021

Time:  11:00 am

Presenter:  Jacqui Bevelheimer, West Central Region Account Manager of Regional Economic Development, Illinois Department of Commerce and Economic Opportunity

Registration Link: https://illinois.webex.com/illinois/onstage/g.php?MTID=ef639aff41a20d2a0f1902b23a0720773

 

Date:  Tuesday, March 9, 2021

Time:  10:00 am

Presenter:  Tracey Glenn, Southwest Regional Manager, Illinois Department of Commerce and Economic Opportunity with special guest, Darrah Perryman with SBA

Registration Link:
https://illinois.webex.com/illinois/onstage/g.php?MTID=eaa1a71b8cd24664728bc5ed152488242

 

Date:  Wednesday, March 10, 2021

Time:  10:00 am

Presenter:  Sal Garza, West Central Region Manager of Regional Economic Development, Illinois Department of Commerce and Economic Opportunity

Registration Link: https://illinois.webex.com/illinois/onstage/g.php?MTID=e86d5a02ceaa02cdc4940ebe7373e1dc7

 

Date:  Tuesday, March 23, 2021

Time:  2:00 pm

Presenter:  Kala Lambert, Southeast Regional Manager, Illinois Department of Commerce and Economic Opportunity with special guest, Darrah Perryman with SBA

Registration Link: https://illinois.webex.com/illinois/onstage/g.php?MTID=e422d5fc34746650aea20c782d01cd96e