The Paycheck Protection Program (PPP) will reopen on Monday for businesses to take out their first or second government loan due to reduced business due to COVID-19, according to a news release from the Small Business Administration.
More than $284 billion has been authorized for job retention and other spending through March 31 for the new round of loans.
Only eligible community financial institutions will be able to grant their very first loan on January 11 and their second PPP loan on January 13. All eligible businesses will then be able to apply for the new round of PPP loans.
Program eligibility has been expanded to include 501(c)(6), housing co-ops, direct marketing organizations and other organizations.
Many small businesses and nonprofits in South Dakota will be eligible for both the first and second draws of PPP forgivable loans, said Jaime Wood, SBA District Manager of South Dakota, in the Press release.
Loans can cover between eight and 24 weeks of expenses, including operations, property damage, supplier costs and worker protection.
“We are excited to continue to provide these resources needed for our state’s economic recovery from COVID-19,” Wood said. “While many businesses have sustained or thrived over the past year, there are still many struggling.”
Wood added that in 2020, nearly 24,000 PPP applications were approved in South Dakota, amounting to about $1.7 billion in assistance.