Dr. Joyce Statement on Reopening of Paycheck Protection Program

Washington, DC Congressman John Joyce, M.D. (PA-13), a member of the House Small Business Committee, released the following statement after the Small Business Administration (SBA) and the U.S. Treasury announced that the Paycheck Protection Program will reopen for new borrowers and eligible small businesses, as authorized by the COVID-19 relief legislation recently signed into law.

Starting on Monday, community financial institutions can make Paycheck Protection Program loans to eligible first-time small business borrowers. On Wednesday, lenders can offer loans for second-time borrowers. The program is expected to open to all participating lenders shortly thereafter.

"Our small businesses and farms are not only the backbone of our economy they are the heart of our community. Across Pennsylvania, our small businesses have been suffering under burdensome COVID-19 restrictions. The Paycheck Protection Program will offer these neighbors a critical lifeline, saving jobs and supporting hardworking families," said Congressman Joyce. "We cannot allow this pandemic to be the end of our cherished small businesses, most of which have been built by families over generations. As we strive to rebuild our economy, this resource will offer targeted relief to those who need it most and equip our community to weather this storm."

Last year, the Paycheck Protection Program supported more than 170,000 small businesses in Pennsylvania.

According to the SBA, new Paycheck Protection Program 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, destination 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.

Additionally, 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.

Further details and guidance documents are available directly from the SBA.

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