ENTERPRISE — The Paycheck Protection Program that helped businesses hurt by the COVID-19 pandemic in 2020 has reopened the program, according to a press release from the federal Small Business Administration.
More than 1.1 million loans worth more than $100 billion in economic relief were issued last year to small businesses forced to lay off workers because of government-mandated closures connected with the pandemic, including many in Wallowa County. Now, an additional $284 billion is being made available to businesses.
“The ‘Second-Draw’ program is a great way for businesses that are still struggling through the pandemic to keep their employees paid and ultimately get some momentum back this year,” said Tim Jones, executive vice president and credit services director for Umpqua Bank, which issued over 17,000 PPP loans worth over $2 billion in 2020. “I think it also shows that the federal government recognizes the need for additional aid and is committed to trying to help as many small businesses as it can.”
In order to receive a Second-Draw PPP loan, applicants must have:
• Already received a PPP loan in 2020.
• Either already spent the full amount of its 2020 PPP loan or will do so before applying for a Second-Draw PPP loan.
• Have 300 or fewer employees on its payroll.
• Experienced at least a 25% decline in revenue in 2020 either in any one quarter compared to that same quarter in 2019 or across the entire year compared to 2019.
Borrowers that either returned or did not accept all or a part of an approved PPP loan in 2020 may also be eligible for a PPP loan increase.
For more information, visit the SBA website at https://tinyurl.com/2ndPPPloan.