PPP loan applications will be taken again Monday as program cranks up with new cash

New applications for “paycheck protection program” (PPP) loans will be taken beginning Monday, as new legislation adding money to the formerly depleted program was signed into law Friday.

The Federal Deposit Insurance Corp. (FDIC), in a financial institution letter (FIL) Saturday, said applicants for the loans must already be certified Small Business Administration (SBA) lenders. The notice about the program was first issued in a joint announcement by the SBA and the Treasury Department.

In FIL 50-2020, the FDIC said the SBA would begin taking the applications at 10:30 a.m. ET Monday.

The PPP loans, the FDIC noted,  are designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if certain criteria are met, such as keeping employees on the payroll and using the money only for specified purposes

Small Business Administration (SBA) and U.S. Department of Treasury Announce Availability of New Paycheck Protection Program Loans