Congressman Chris Jacobs (NY-27) is announcing that the Paycheck Protection Program has been reopened for first- and second-time borrowers.
“Since I took office this summer, I have made it a top priority to extend the Paycheck Protection Program," Jacobs said. "It has supported 51 million American jobs, with 12 million of those in rural communities and thousands of them right here in Western New York."
“The reopening of this program represents our continued commitment to supporting the hard-working American small business owners and employees who are the backbone of our local communities and economy.”
The Paycheck Protection Program reopens today – Monday, Jan. 11th – for first-time borrowers through community financial institutions. On Wednesday, Jan. 13th, the program will be open to second-time borrowers.
A borrower is eligible for a second draw if they:
1) received a first-time loan and has or will use the full amount for authorized uses;
2) has no more than 300 employees, and
3) can demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.
In addition, when the most recent COVID-19 package was signed into law, it enacted a provision that ensures expenses paid for with PPP loan funds will be considered tax deductible. This upholds the original intent of the CARES Act.
“I successfully joined my colleagues in strongly advocating the allowance of tax deductibility for loan expenses. Many businesses accepted these loans under the premise they would not be surprised with an additional tax burden this coming year,” Jacobs said. “I’ll keep working to support small businesses, protect and create jobs, and move our Western New York economy forward.
For more information regarding the reopening of the Paycheck Protection Program, please visit here.