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The New and Improved 2021 PPP Loan

Paycheck Protection Program has reopened and is accepting new applications PPP has provided $525 billion to America’s small businesses said Treasury Secretary Steven Mnuchin

Benjamin Franklin on the $100 U.S. bill. (Pixlr)

SAN ANTONIO – The Paycheck Protection Program has officially reopened as of Monday, Jan. 11, and is expected to provide millions of Americans with more money to help keep and sustain their businesses. PPP loans are not made by the Small Business Administration but instead made by lending institutions which are then guaranteed by the SBA.

The program originally opened in March 2020 when President Donald Trump signed the CARES Act into law, which included language for the PPP. The SBA then released general guidelines for borrowers and lenders which authorized up to $349 billion in forgivable loans to small businesses.

In order to be eligible for loan forgiveness, the loans must be used for payroll costs, interest on mortgages, rent and utilities.

This next round of PPP loans authorizes up to $284 billion in loans that will help small businesses with job retention, in addition to other expenses, according to the SBA.

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven Mnuchin.

The second round of loans, which opened to new borrowers Monday and Tuesday and will open to existing borrowers on Wednesday, is initially only going to be funded by community financial institutions before it opens to all participating lenders.

A press release from the SBA states that this, and other changes to the PPP, are meant to enhance the effectiveness and accessibility of the program.

These are the key PPP updates for round two, per the SBA:

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

  • 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, direct 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

  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan

Borrowers wishing to draw a second PPP loan will likely be eligible if they used the full amount of the first PPP loan for authorized purposes, have no more than 300 employees and can show at least a 25% reduction in gross receipts between comparable quarters from 2019 to 2020.

“This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers,” said Mnuchin.

Nearly 3,000 San Antonio businesses requested funds from the PPP during the first draw. Among the businesses that requested the most money in San Antonio were Bill Miller Bar-B-Q, Our Lady of the Lake University and the Law Offices of Thomas J Henry, all of which requested a loan amount between $5 and $10 million. Data did not specify how much each company requested specifically.

According to a previous KSAT report, of the 378 PPP loans valued between $5-10 million that were given to Texas businesses, 25 of them are located in San Antonio.

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA administrator Jovita Carranza.

If you qualify to apply for a PPP loan, contact your local community financial institution to see if they are a participating lender.

Businesses, self-employed persons, independent contractors, sole proprietors, housing and small agricultural cooperatives, select nonprofits, tribal businesses and veterans’ organizations will be able to apply for PPP loans in the second draw, according to MarketWatch.

Carranza said Friday that the new “guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”


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ABOUT THE AUTHOR: Mary Claire Patton Mary Claire Patton has been a journalist with KSAT 12 since 2015. She has reported on several high-profile stories during her career at KSAT and specializes in trending news and things to do around Texas and San Antonio. email

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