Good news for small businesses, the Paycheck Protection Program (PPP) portal will re-open for applications from small lenders on Friday, Jan. 15.
The US Small Business Administration (SBA) announced that the PPP portal for PPP-eligible lenders with less than $1 billion in assets will open Friday, Jan. 15, and on Tuesday, Jan. 19 the portal will be open to all PPP lenders for first and second draw loan applications.
The SBA had already granted access to Community Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microloan Intermediaries in an effort to reach underserved and minority small businesses.
Friday’s opening should make about 5,000 more lenders eligible for PPP funds. The SBA also plans to have dedicated service hours for the smaller lenders once the portal fully opens on Jan. 19.
First draw PPP loans are for borrowers who have not received a PPP loan before Aug. 8, 2020. The first round of PPP loans helped 5.2 small businesses keep 51 million workers employed.
Second draw PPP loans are for eligible small businesses with 300 employees or less that received a first draw PPP loan and will use or have used the full amount and can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of the second draw PPP loan is $2 million.
SBA Administrator Jovita Carranza said in a press release, “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. SBA has worked expeditiously to ensure our policies and systems are re-launched so that this vial 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.
Update PPP lender forms, guidance and resources are available at www.sba.gov/ppp and www.treasury.gov/cares .
Wells Fargo logo
PPP to re-open and new simplified forgiveness process coming soon
As you are likely aware, a COVID-19 relief package was signed into law on December 27, 2020 which includes another round of funding for Paycheck Protection Program (PPP) loans. We are hard at work preparing to reopen our PPP application as soon as practical after we incorporate all necessary operational guidance from the Small Business Administration (SBA).
The SBA is reopening the PPP program in phases, starting with community lenders on January 11th for first-time PPP loans and January 13th for second time, or “Second Draw” PPP loans, followed sometime shortly thereafter for all other participating financial institutions, including Wells Fargo.
The SBA’s staggered approach to reopening the PPP is intended is to provided increased access to PPP help for the smallest, hardest hit businesses and underserved communities get the support they need as quickly as possible. We will also reopen our PPP application in phases to support these businesses as follows:
We anticipate opening our PPP application before the end of the week for the following customers:
All new first-time PPP loan customers (those who have never obtained a PPP loan from any lender) and who have a Wells Fargo business checking account as of 12/1/2020 in the name of the business applying for a PPP loan.
Second-time, (also called “Second Draw”) PPP loan customers (those who have gotten a PPP loan in the past) who obtained their first PPP loan from Wells Fargo and; will be applying for a Second Draw loan request amount of $150,000 or less; and have an eligible Wells Fargo business checking account that was opened on or before 12/1/2020 in the name of the business applying for the PPP loan.
Approximately 72 hours after the first phase, we anticipate opening our PPP application for the following customers:
Second Draw PPP loan customers who applied with another bank for their first PPP loan, and also have a Wells Fargo Business Checking account as of 12/1/2020 in the name of the business applying for a PPP loan
Second Draw PPP loan customers who are applying for more than $150,000
All PPP loan applicants must have an eligible Wells Fargo business checking account that was opened on or before 12/1/2020 in the name of the business applying for the PPP loan.
We will be accepting PPP applications as quickly as possible so that we can prepare for when the SBA is ready to process applications from larger institutions.
WHen does WF expect to start taking and processing 2nd draw customers who used WF the first time also?
And how did the corporate malfeasers at Wells Fargo get this inside deal?