The U.S. Small Business Administration 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 today, Jan. 15, at 9 a.m. ET. The portal will fully open on Jan. 19 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
SBA will continue its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions and farm credit institutions. It also plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.
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.
PPP loans have opened to CDFIs, MDIs, CDCs and Microloan Intermediaries. As the program re-opens for all First and Second Draw borrowers next week, the PPP will allow small businesses to keep workers on payroll and connected to their health insurance.
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, helped 5.2 million small businesses keep 51 million American workers employed.
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.