Paycheck Protection Program to reopen Monday

The Paycheck Protection Program will be reopening Monday, bringing new financial hope for businesses hit hard by the pandemic.

News 12 Staff

Jan 11, 2021, 12:22 PM

Updated 1,260 days ago

Share:

The Paycheck Protection Program will be reopening Monday, bringing new financial hope for businesses hit hard by the pandemic.
The Small Business Administration and the Treasury Department say new borrowers and some existing borrowers will be eligible. Officials also say there are safeguards in place for this round of loans to make sure the money goes to where it's needed most.
The new round of funding includes $284 billion for things like job protection and operating costs.
According to federal officials, the program will be targeted at small businesses and nonprofits, with a special emphasis on low-income and minority-owned businesses.
That's after the first round of payments drew sharp criticism because some large corporations, which had existing relationships with banks, took out massive loans while some family-owned businesses were shut out.
Economic analyst Martin Cantor says the second PPP will give the economy a much needed lifeline so it can stay afloat until pandemic restrictions loosen.
To be eligible for a first-time loan through the program, a business can have no more than 500 employees. For second time loans, the maximum is 300 workers.
That business would also have to show that revenue dropped by 25% compared to 2019.
The maximum amount that can be borrowed this time around will be $2 million. It will last through March 31.
The loans will have five-year terms and carry an interest rate of 1%.
The Associated Press contributed to this story.


More from News 12
1:11
Police: Sinkhole caused by water main break causes traffic issues in South Brunswick

Police: Sinkhole caused by water main break causes traffic issues in South Brunswick

2:35
Higher temps return for Tuesday; tracking potential for Wednesday storms

Higher temps return for Tuesday; tracking potential for Wednesday storms

0:58
Officials: Large fire injures 3 firefighters, displaces more than 50 people in Passaic

Officials: Large fire injures 3 firefighters, displaces more than 50 people in Passaic

2:28
Man dies while trying to get kids off the beach during a lightning storm in Seaside Park

Man dies while trying to get kids off the beach during a lightning storm in Seaside Park

0:19
Prosecutor: 20-year-old man fatally shot in Irvington, suspect sought

Prosecutor: 20-year-old man fatally shot in Irvington, suspect sought

1:49
State police: Traffic fatalities on the rise across New Jersey this year

State police: Traffic fatalities on the rise across New Jersey this year

2:28
Staffer testifies that Sen. Menendez changed his stance on Egyptian government after meetings

Staffer testifies that Sen. Menendez changed his stance on Egyptian government after meetings

0:24
Officials: 5 people rescued from flash flooding on bridge in Readington

Officials: 5 people rescued from flash flooding on bridge in Readington

0:16
Police: Body of missing swimmer recovered from Lake Hopatcong

Police: Body of missing swimmer recovered from Lake Hopatcong

0:52
Officials: Multiple people displaced by New Milford apartment fire

Officials: Multiple people displaced by New Milford apartment fire

1:14
Middletown residents deal with damages, power outages from severe storms

Middletown residents deal with damages, power outages from severe storms

0:45
Police: Woman resists arrest at Wildwood Crest motel, bites officer’s hand

Police: Woman resists arrest at Wildwood Crest motel, bites officer’s hand

0:31
Prosecutor: Newark man sentenced to 22 years in prison for fatally stabbing roommate at homeless shelter

Prosecutor: Newark man sentenced to 22 years in prison for fatally stabbing roommate at homeless shelter

0:18
Police: 4 people shot in Trenton, 2 in critical condition

Police: 4 people shot in Trenton, 2 in critical condition

1:45
Sunday storms cap wild weather week across New Jersey

Sunday storms cap wild weather week across New Jersey

2:17
Township of Verona proposes creation of public safety complex

Township of Verona proposes creation of public safety complex

1:52
‘A welcome relief.’ Trenton opens swimming pools day early amid intense heat

‘A welcome relief.’ Trenton opens swimming pools day early amid intense heat

0:35
Manchester police: Howell Township man drowns in Crystal Lake

Manchester police: Howell Township man drowns in Crystal Lake

1:27
Summer storm brings damaging hail and winds to North Jersey

Summer storm brings damaging hail and winds to North Jersey

2:06
Study: Walking regularly can help alleviate recurring back pain

Study: Walking regularly can help alleviate recurring back pain