New PPP Loans Available For Small Businesses
The Paycheck Protection Program (PPP) has reopened, allowing small businesses in Hawai‘i the opportunity to apply for new funding amid the COVID-19 pandemic.
The US Small Business Administration announced the news Tuesday to all participating PPP lenders. Small businesses should consult with their lenders and submit First or Second Draw loan applications if eligible.
“The new round of funding will help Hawai‘i small businesses meet their payroll and provide people with paychecks,” said US Senator Brian Schatz (D-Hawai‘i). “I encourage all Hawai‘i small businesses to visit our online resource guide, talk with their lenders, and learn more about how to get help.”
First Draw PPP Loans are for those borrowers who have not yet received a PPP loan. The first round of the PPP, which ran from March to August 2020, provided 25,000 loans totaling $2.5 billion to Hawai‘i small businesses, helping retain more than 225,000 jobs in the state.
Second Draw PPP Loans are for eligible small businesses with 300 or fewer employees that previously received a First Draw PPP Loan and will use or have used the full amount. Eligible businesses must also demonstrate at least a 25% revenue loss in any quarter of 2020 relative to the same quarter in 2019. The maximum amount of a Second Draw PPP loan is $2 million.
A full small business resource guide with eligibility information and program details is available here.