The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, 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, 2021 at 9 a.m. EST. The portal will later fully open to all participating PPP lenders on Tuesday, Jan. 19, 2021 to submit first and second draw loan applications to the SBA.

 

Earlier this week, the SBA granted dedicated PPP access to community financial institutions (CFIs) which included community development financial institutions (CDFIs), minority depository institutions (MDIs), certified development companies (CDCs), and micro-loan intermediaries as part of what the agency said were its ongoing efforts to reach underserved and minority small businesses.

 

SBA officials said, it will continue its emphasis, on Friday, on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions. The agency also plans to have dedicated service hours available for these smaller lenders after the portal fully re-opens next week.

 

U.S. SBA administrator, Jovita Carranza, said 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 period of uncertainty for small businesses. “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,” he said. “I strongly encourage America’s entrepreneurs needing financial assistance to apply for a first or second draw PPP loan.”

 

Meanwhile, U.S. Secretary of the Treasury, Steven T. Mnuchin said the treasury department was pleased to have opened PPP loans to CDFIs, MDIs, CDCs, and micro-loan intermediaries. “The PPP is already providing America’s small businesses hardest hit by the pandemic with vital economic relief,” he said. “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 did not receive a PPP loan before Aug. 8, 2020. SBA categorized the first round of the PPP, which ran from March to August 2020, as a historic success that 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 for authorized uses only, and that can demonstrate at least a 25 percent reduction in revenue (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.