The CARES Act & Paycheck Protection Program (PPP)

SBA Paycheck Protection Program (1/8/2021)

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter

Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Key PPP 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, direct 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. 

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.

The new guidance released includes:


For more information on SBA’s assistance to small businesses, visit or

The CARES Act & Paycheck Protection Program (PPP)

 Coronavirus Aid, Relief and Economic Security (CARES) Act was voted on at the end of March and it includes many different strategies to provide economic relief during this pandemic. 
One program that may be of interest to our business community is the Paycheck Protection Program.  

The Paycheck Protection Program (PPP) loans, unlike Economic Injury Disaster (EIDL) loans, are processed through any existing Small Business Administration (SBA) 7(a) lender or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution. You should consult with your local lender as to whether it is participating.
  Our office has compiled a list of local participating lenders. Please note that this list only includes local lenders and will be updated. 

For more information on the CARES Act, Congresswoman Trahan's Office has put together a comprehensive summary of the $2 trillion stimulus package.

MA Growth Capital Corporation offering PPP Technical Assistance and Multilingual Translation
Massachusetts Announces Initial Implementation of New Federal Unemployment Benefits From CARES Act (4/9/2020)
SBA Economic Injury Disaster Loan Webinar
Paycheck Protection Program (PPP) Fact Sheet
PPP Application
PPP Worksheet Example
Find a nearby lender eligible to issue a loan under the Paycheck Protection Program