Small businesses can start applying for new PPP loans on Monday

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With PPP 2, the SBA says it's trying "to promote access for smaller lenders and their customers", specifically "eligible borrowers in underserved and disadvantaged communities".

When the PPP loan portal re-opened today, it initially accepted First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries. The government also set money aside for borrowers with a maximum of 10 employees and for those requesting loans under $250,000 located in low- or moderate-income neighborhoods.

PPP borrowers must spend 60% of the loan on payroll, as lawmakers primarily intended the program to help keep Americans employed.

The opening of the SBA loan system is created to efficiently and effectively implement the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and to ensure increased access to the PPP for minority-, underserved-, veteran- and women-owned small business concerns. That includes protective equipment for workers, costs associated with building outdoor dining spaces and repairing property damage - a nod to businesses that may have suffered damage during widespread racial justice protests over the summer.

Business owners who already got one PPP loan can now apply for another.

The loans are available to both new and existing PPP borrowers, according to a press release.

Second draw PPP loans have basically the same terms as first draw ones: The SBA backs them, there's no collateral required, interest is 1%, the maturity is five years, et cetera.

Previously received a "first draw" PPP loan and will or have used the full amount only for authorized uses.

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. Second draw hopefuls can apply starting Wednesday. The new program will run through March 31.

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