The Paycheck Protection Program (PPP) has two loan programs open now through the end of March 2021 to help businesses keep their doors open and employee wages paid during the COVID-19 pandemic.

The PPP, offered by the U.S. Small Business Administration, provides loans for first-time applicants as well as employers who previously had requested and received help in 2020 as part of the federal government’s response to the pandemic, according to information on the SBA.gov website.

The First Draw PPP Loans are for first-time participants. The SBA reopened this loan program on Jan. 11, 2021 and is currently accepting applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets. This category includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help find a participating lender. The program will be opened up to all lenders on January 19, 2021.

The Second Draw PPP loan opened on Jan. 13, 2021 and is designated for certain businesses who have already received a PPP loan. At least $25 billion is being set aside for eligible borrowers – those employers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods.

First Draw PPP Loans can be used to help fund payroll, including benefits, as well as rent and mortgage interest, utilities, and even uninsured property damage caused by vandalism or looting in 2020, among other things, according to information published on the SBA.gov site. Loan forgiveness is an option, as well, if certain criteria are met, including whether employees are still employed and compensation levels are maintained and at least 60 percent of the money is spent on payroll costs.

Generally speaking, most borrowers who received help through the First Draw PPP may apply for a second loan.

According to the website, a borrower is generally eligible for a Second Draw PPP Loan if a first loan was applied for and received; the business fewer than 300 employees and if the employer can show at least a 25% reduction in gross receipts between comparable periods of time in 2019 and 2020.

For a comprehensive look and details about the PPP loans, visit SBA.gov. Your local banker likely will have additional information about the loan program as well.