Bustos Announces Availability of Paycheck Protection Program Funds for Illinois Small Businesses

Paycheck Protection Program resumes following latest COVID-19 relief legislation

WASHINGTON – Today, Congresswoman Cheri Bustos (IL-17) encouraged struggling businesses to seek assistance from the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), which is once again available following the passage of the latest COVID-19 relief legislation.

“While we are still reeling from last week’s attack on the Capitol, we cannot lose sight of the fact that Americans are hurting from a pandemic that continues to rage,” Congresswoman Bustos said. “I’m glad to see the Paycheck Protection Program open again this week following the latest COVID-19 relief legislation. I encourage Illinois small businesses in need of assistance to explore the options available to them and will continue to work to ensure they have the resources needed to make it through these difficult times.”

BACKGROUND

This week, “First Draw” loans were made available for participating Community Financial Institutions, which include Community Financial Development Institutions (CDFIs), Minority Depository Institutions (MDIs), Community Development Corporations (CDCs) and Microlender Intermediaries. These loans are for struggling businesses who have not previously received a PPP loan and for certain other businesses who may be eligible to increase their initial PPP loan amount. More information on the First Draw Loans can be found HERE.

On January 13, “Second Draw” loans will be made available to businesses who have already received a PPP loan after the enactment of the CARES Act, but need another loan to continue operations. These loans will be available through the a broader set of financial institutions, not just Community Financial Institutions. More information on the Second Draw Loans can be found HERE.

Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All Second Draw PPP Loans will have the same terms regardless of lender or borrower.

In addition to providing robust funding for PPP, the latest COVID-19 relief bill enacted key policy changes, which includes:

  • Expanding PPP eligibility to nonprofits, local newspapers, TV and radio broadcasters
  • Allowing borrowers to set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
  • Allowing PPP loans to cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures

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