Ivey gives update on new PPP loans

Last week, Alabama Gov. Kay Ivey gave an update on the next round of Paycheck Protection Program (PPP) loans coming to the state.

On Dec. 27, U.S. Congress replenished the PPP loan with the new Coronavirus Relief Bill with an additional $284.5 billion in funding for the program, with the Small Business Administration (SBA) officially reopening the program on Jan. 11.

Eligible borrowers will be broken up into two categories, first draw borrowers and second draw borrowers, this time around. First draw borrowers are those businesses that have not previously received a PPP loan. These borrowers must have been operational before Feb. 15, 2020 and have no more than 500 employees. Some businesses previously ineligible for PPP loans – such as 501 (c) (6) organizations – will be able to qualify for the loans. First draw borrowers can apply immediately.

Second draw borrowers are those businesses that received a PPP loan previously and have or will use the full amount for authorized uses. A second draw borrower can have no more than 300 employees and must demonstrate a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020. Second draw borrowers could begin applying on Jan. 13.

“This update from the (SBA) is welcome news, and I encourage small business owners across our state to take advantage of these available funds,” Ivey said. “Any support that we can provide our small businesses in this challenging season is critical to our overall recovery.”

For more information, visit https://tinyurl.com/yyd689kb.