A new wave of Paycheck Protection Program loan applications began Monday.

The latest federal coronavirus aid package passed at the end of December included the revitalization of the loan program meant for small businesses.

“This program being replenished like this is going to have a positive impact on the local economy,” said Jordan Grady, executive director for the Butler County Chamber of Commerce.

The program offers specialized loans from the Small Business Association to small businesses affected by the COVID-19 pandemic. The loans are meant to help the businesses continue their operations and survive pandemic mitigation efforts.

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Jovita Carranza, the administrator for SBA, in a news release last week.

The revamped program also comes with changes.

“This updated guidance enhances the PPP's targeted relief to small businesses most impacted by COVID-19,” said Treasury Secretary Steve Mnuchin in last week's release. “We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

The key updates for the latest PPP loans include setting the coverage period for between eight and 24 weeks; expansion to include 501(c)(6)s, housing cooperatives and direct marketing organizations, among other new eligible recipients; and more flexibility for seasonal employees.

The loans will also now cover additional expenses, including operations expenses, property damages costs, supplier costs and worker protection expenses.

Grady said the new uses will create more flexibility for the loans and even more opportunity for the businesses who seek them.

“It's still going to serve its main purpose, to keep people employed, and now it can be used, if you're qualified, for things that can keep businesses operating too,” Grady said.

The funding for the PPP loans has been divided into two separate pools — one that will fund new borrowers and another for returning borrowers, although the latter will have extra conditions to meet.

Returning borrows will also have a shot at getting another loan as long as they meet three points of criteria.

The borrower had to use previous loans only for authorized uses, must have 300 employees or fewer, and has to show 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Grady said these loans can provide the ideal boost a business needs to extend the life of their business while keeping people employed, but it's important to keep an eye on the terms needed for forgiveness opportunities.

He said anyone who receives one of these loans should pay particular attention to their expenditures and staying on top of how and what they need to produce in that regard.

“These are lower interest loans, similar to terms on a line of credit,” Grady said. “But if you can avoid paying anything back, you should take advantage of that.”