Starting January 11th, 2021, small businesses (500 or less employees) and other eligible entities can start processing the paperwork for a “First Draw” application for the Paycheck Protection Program (PPP). PPP loans can provide a source of financial help from the negative impacts of the Covid-19 pandemic. The PPP loans are forgivable if the terms are met according to the Small Business Administration (SBA) guidelines.

The proceeds of the loan can be used to make payroll for employees, some 10-99 workers, and pay for the business’s mortgage interest, rent, utilities and some other expenses. There are different loan amounts and specific details that apply to different types of small businesses and other entities as outlined by the SBA.

The SBA has a FAQ site that will provide information for small businesses.

If a business previously received a PPP loan, they can apply for a “Second Draw” loan if they meet the requirements. One requirement is if the Business suffered a 25% loss of income between quarters in 2019 and 2020. Generally, this requirement does not apply to “First Draw” applicants and those who started a business after March of 2020. The “Second Draw” application can be found at

This new legislation has simplified the application for “First Draw” businesses and entities that qualify. The application can be found at

For small businesses that have not applied, you can go to for a summary of the “First Draw” program under this new legislation.

In Alabama, there is an excellent source of help for small businesses. The Small Business Development Center network (SBDC) has business advisers located across Alabama. You can go to to find a center near you.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.