City of Bluefield WV has Resource for Second Draw PPP
Updated: Apr 21
The SBA and Treasury announced the re-opening of PPP applications.
Bluefield, WV – The Bluefield WV Economic Development Authority (BEDA) is forwarding the SBA and Treasury’s announcement of the re-opening of the Paycheck Protection Program (PPP) during the week of January 11th, 2021. New borrowers and certain existing borrowers may be eligible to receive funds.
Guidance can be found here: PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns; Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and Interim Final Rule on Second Draw PPP Loans.
BEDA took an aggressive approach to engaging local businesses during the first draw of PPP by providing a free resource to assist business owners with the application process through the MBAs Fighting COVID-19 group and the Secretary of State Mac Warner’s Office. Of the 81 businesses assisted with the first draw application, 23 of them were referred by BEDA. BEDA is seeking resources to ensure the City of Bluefield WV businesses are able to maximize the benefit of the second draw.
Key PPP updates include:
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; and
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
According to the SBA News Release, this round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
“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 T. Mnuchin. “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.”
For questions regarding this press release, please contact Savannah Carabin at firstname.lastname@example.org or call (304) 327-2401 ext. 2408.