- SBA updates timeline on applications for the Paycheck Protection Program
- Smaller community lenders can access the PPP loan portal starting on Friday, with the portal reopening to all lenders on Jan. 19
- PPP applications became accessible to community financial institutions earlier this week
The U.S. Small Business Administration has updated its timetable on access to the Paycheck Protection Program lending portal, granting further access at the end of the week and reopening the program to all lenders on Tuesday.
The SBA, in consultation with the Treasury Department, announced that lenders with $1 billion or less in assets can begin submitting applications for either first or second draw loans on 9 a.m. on Friday, Jan. 15. Approximately 5,000 lenders will gain access to the PPP portal at this point, including community lenders, credit unions, and farm credit institutions. The SBA will also begin offering service hours to address these lenders’ needs.
All lenders will be able to start submitting PPP applications on Tuesday, Jan. 19.
The program reopened earlier this week, but was limited to community financial institutions for early applications; first draw loans were also given priority over second draw loans. These lenders included community development financial institutions, minority depository institutions, certified development companies, and microloan intermediaries.
Under a $900 billion stimulus bill passed late last year, PPP was revived with $284.5 billion in new funding. The program was updated to permit new entities to qualify, allow funds to be used for more purposes, and simplify the forgiveness process for smaller loans. It also set requirements aimed at directing funds to smaller companies and those that have suffered major revenue losses during the COVID-19 pandemic.
First draw loans are open to any businesses that didn’t receive a PPP loan before the initial program expired on Aug. 8, 2020. Loans are capped at $10 million, matching the original cap, but applicants must have 500 or fewer employees.
Second draw loans are open to companies that have previously received a PPP loan. However, they are capped at $2 million and only open to eligible businesses with 300 or fewer employees. In addition, applicants must show that they experienced a year-over-year revenue loss of at least 25 percent during any quarter in 2020.
