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.