SBA Opening Paycheck Protection Program to All Lenders on Jan. 19
WASHINGTON, D.C. — The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, reopened 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 Jan. 15. The portal will fully open on Tuesday, Jan. 19 to all participating PPP lenders.
“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 Administrator Jovita Carranza said. “SBA has worked expeditiously to ensure our policies and systems are relaunched 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. 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 fewer 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.
Updated PPP lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.