The Small Business Administration (SBA) announced that they will begin accepting loan applications from community financial institutions for new “first draw” Paycheck Protection Program (PPP) loans beginning on January 11 and for “second draw” PPP loans beginning on January 13. Other lenders will be allowed to submit loan applications shortly thereafter.

New guidance and loan application forms issued by the SBA and U.S. Department of Treasury provide clarifications and some changes as to who may be eligible for this round of PPP loans and the amount that can be borrowed. Some borrowers that previously qualified for PPP loans will not be eligible to receive “second draw” PPP loans.

This update outlines the key takeaways from this new guidance and the new application forms.