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The next round of Paycheck Protection Program loans will begin on Monday, though not all lenders will have access to the program right away.

As part of an initiative to promote access to capital, the U.S. Small Business Administration said in a statement that only community financial institutions would be able to make loans on Monday, and for the first two days, only applications for businesses that did not take a loan in 2020 will be accepted by the SBA.

The new round of PPP includes two types of loans: first draw loans for small businesses that did not take loans last year and second draw loans for businesses that received a loan but had reduced revenue in 2020.

The SBA will start accepting second draw loans from community financial institutions on Wednesday, Jan. 13. Community financial institutions include community development financial institutions (CDFIs) and minority depository intuitions.

The PPP will then open to all participating lenders shortly thereafter, the SBA said.

This round of the PPP authorized up to $284 billion toward job retention and certain other expenses through March 31.

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” SBA Administrator Jovita Carranza said in a statement. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

PPP updates from the SBA 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.

The SBA also said 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 percent reduction in gross receipts between comparable quarters in 2019 and 2020.

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” Treasury Secretary Steven T. Mnuchin said in the statement. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”