New SBA Guidance Released, 2nd PPP Loan Draws Available, Gaming Eligible
January 8, 2021
On Wednesday, January 6th 2021, the Small Business Administration (SBA) released several updated documents pertaining to the Paycheck Protection Program (PPP) in light of the most recent legislative stimulus package. These documents include updated Guidance on Accessing Capital for Minority, Underserved, Veteran, and Women-Owned Business Concerns as well as an Interim Final Rule on the Paycheck Protection Program as amended by the Economic Aid Act (the most recent stimulus legislation), and an Interim Final Rule on Second Draw Loans.
The initial rounds of the PPP helped aid 51 million American workers with an average loan size of $101,000. This new round of funding will continue to provide American workers with much needed relief and better target minority and small business concerns.
- SBA Paycheck Protection Program Website
- Guidance on Accessing Capital for Minority, Underserved, Veteran, and Women-Owned Business Concerns
- Interim Final Rule on the Paycheck Protection Program as amended by the Economic Aid Act
- Interim Final Rule on Second Draw Loans
The guidance and interim final rules specify that:
- The SBA is authorized to make first and second draw PPP loans through March 31, 2021 and the rule will be in effect once filed with the Office of the Federal Register
- A business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues, and 13 CFR 120.110(g) is inapplicable to PPP loans
- First time PPP applicants are still able to apply.
- Businesses are eligible to apply for a second PPP Loan if they have 300 or fewer employees
- The maximum amount a business may borrow for a second PPP loan is the lesser of two and a half months of the borrowers average monthly payroll costs or $2 million
- Businesses that are temporarily closed remain eligible for a second PPP loan
- The SBA will only accept PPP loan applications from community financial institutions for at least the first two days when the PPP loan portal re-opens
- The SBA will continue to strongly encourage CDFIs and minority-, women-, veteran-, and military-owned lenders to apply to become PPP lenders. SBA will give full and prompt consideration to these applications to become PPP lenders consistent with program guidelines, including in cases where the lender does not meet all of the requirements listed on the updated SBA Form 3507
NAFOA is continuing to work with the SBA, Department of Treasury, Tribes, and lenders to ensure the PPP's successful implementation within Indian Country. Stay up to date with PPP updates by regularly checking the SBA's PPP website. For any other questions or concerns about this webinar, please contact Dante Desiderio, Executive Director, at 202-631-2003 or email@example.com