COVID-19 Update 1/13/2021

Update on 1/15/21: It’s just been announced that the Paycheck Protection Program (PPP) loan portal will be re-opened to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.

SBA and Treasury Announce PPP Re-Opening; Issue New Guidance

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has announced 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.  So, if you’re considering applying or re-applying, best to start planning and organizing now so you’re ready to hit the “send” button when the time comes.

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.

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:

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-Owned Business Concerns;
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
• Interim Final Rule on Second Draw PPP Loans.

Minnesota COVID-19 Vaccine Phases and Planning

COVID-19 vaccine planning is currently happening at federal, state, and local levels of government.  Using guidance from the Centers for Disease Control and Prevention (CDC) Advisory Committee on Immunization Practices (ACIP), the Minnesota Department of Health has set up a tiered system for priority distribution of the COVID-19 vaccine.

Due to a myriad of unknowns, a specific timeline for each of the vaccination tiers is not yet available.  Check here for future updates.

Minnesota also just released a new vaccine dashboard providing more specific information on vaccination administration and distribution, including county-by-county doses, how many doses have been shipped to health providers in the state and how many total doses have been promised by the Centers for Disease Control and Prevention.

Note: This content and analysis is for informational purposes only and should not be construed as legal advice.  Please consult your legal and financial advisors for detailed information before taking any action.