• Scott Waguespack

PPP Updates

The United States Small Business Administration (SBA) Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, and certain supplier costs and expenses for operations. PPP allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.


To build on the success of the PPP, the SBA has announced several reforms to further target the PPP to the smallest businesses and those that have been left behind in previous relief efforts:

  • Instituting a 14-day period, starting at 8:00 a.m. CST on Wednesday, February 24, 2021 until 4:00 p.m. CST on Friday, March 9, 2021, during which only businesses with fewer than 20 employees can apply for relief through the Program.

  • Helping sole proprietors, independent contractors, and self-employed individuals receive more financial support. These types of businesses, which include home repair contractors, beauticians, and small independent retailers, make up a significant majority of all businesses.

  • Eliminating an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Program.

  • Eliminating an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Program.

  • Ensuring access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.

These reforms ensure that small businesses can access much needed PPP funds to persevere through the pandemic, recover, and build back better. These efforts are meant to reach minority-owned and very small businesses that may have previously missed out on accessing loans to help weather the coronavirus pandemic.


The Paycheck Protection Program remains open for First and Second Draw PPP loans until March 31, 2021.


As a reminder, businesses apply for Paycheck Protection Program loans through a bank, credit union, CDFI or other lenders. Use the SBA Lender-Match tool to get matched to potential PPP & other lenders offering SBA-backed funding.


While BACP does not manage the Paycheck Protection Program, they will be sharing information regularly in order to make sure that all Chicago businesses have access to these essential funds.


To learn more about the PPP, please visit these links:

  • Overview of First Draw Loan Terms

  • Overview of Second Draw Loan Terms