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The U.S. Small Business Administration announced Friday that the next round of Paycheck Protection Program borrowing will begin Jan. 11, but there will be a catch.

Only applications from new PPP borrowers will be accepted starting Monday, and those applications — called “first draw loans” — can only be made with what the SBA is calling “community financial institutions.”

The SBA defines those as Community Development Financial Institutions, minority deposit institutions, certified development companies and microloan intermediaries, reported the Washington Business Journal.

Second-draw PPP loan applicants — businesses that received funding in the first PPP round — can apply with community financial institutions starting Jan. 13.

The PPP will open to all participating lenders “shortly thereafter,” according to a news release from the SBA.

Borrowers who previously participated in PPP are eligible for a second draw loan if they have used the full amount of the first loan only for authorized uses, have no more than 300 employees and can demonstrate at least 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

A number of large national banks and local community banks have indicated participation in the latest round of PPP lending, including Wells Fargo, Bank of America, JPMorgan Chase and Citibank as well as Fresno’s United Security Bank, Visalia’s Suncrest Bank and Porterville’s Bank of the Sierra.

New updates include PPP borrowers choosing a “covered Period” from eight to 24 weeks to spend the loan proceeds. Up to 40% can be used on expenses including mortgage interest, rent, property damage, supplier costs and personal protective equipment.

The most recent Covid-19 relief act from Congress sets aside $15 billion for first and second-draw lending by community financial institutions; $15 billion in first and second draw by Insured Depository Institutions (banks), credit unions and farm credit systems with consolidated assets of less than $10 billion; $35 billion for new, first-draw borrowers; and $15 billion and $25 billion for first draw and second draw PPP loans, respectively, for borrowers with a maximum of 10 employees or for loans less than $250,000 to borrowers in low-or moderate-income neighborhoods.

SBA has determined that at least 25% of each of those set-asides will go to each one of the following groups: loans to borrowers with a maximum of 10 employees and loans less than $250,000 to borrowers in low-or moderate-income neighborhoods.

“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 SBA Administrator Jovita Carranza.  “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.”