SBA Re-Opening PPP to Small Lenders on Friday, All Lenders on Tuesday
SAN JUAN – The U.S. Small Business Administration (SBA) has announced it will re-open the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, Jan. 15 at 9 a.m. EST. The portal will fully open Tuesday, Jan. 19 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
Earlier in the week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries “as part of the agency’s ongoing efforts to reach underserved and minority small businesses,” the news release reads.
On Friday, SBA will open to approximately 5,000 more lenders, including community banks, credit unions and farm credit institutions. Moreover, the agency also plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.
“A second round of PPP could not have come at a better time, and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continuing weathering this time of uncertainty,” said SBA Administrator Jovita Carranza. “SBA has worked expeditiously to ensure our policies and systems are re-launched so that this vital small business aid helps communities hardest hit by the pandemic. I strongly encourage America’s entrepreneurs needing financial assistance to apply for a First or Second Draw PPP loan.”
First Draw PPP Loans are for those borrowers who have not received a PPP loan before Aug. 8, 2020. The first round of the PPP, which ran from March to August 2020, “was a historic success helping 5.2 million small businesses keep 51 million American workers employed,” the agency said.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, “that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million,” according to the SBA.
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