Paycheck Protection Program to re-open to all lenders on Tuesday

ABC50 NOW

FILE – In this May 21, 2020 file photo, a man looks at signs of a closed store due to COVID-19 in Niles, Ill. U.S. businesses shed 2.76 million jobs in May, as the economic damage from the historically unrivaled coronavirus outbreak stretched into a third month. The payroll company ADP reported Wednesday that businesses have let go of a combined 22.6 million jobs since March.AP Photo/Nam Y. Huh, File)

WASHINGTON, D.C. (WWTI) — The Paycheck Protection Program will again be open to small and all lenders in the coming days.

The U.S. Small Business Administration , in consultation with the United States Treasury Department, is scheduled to re-open the Paycheck Protection Program loan portal to eligible lenders this week and all lenders following the Martin Luther King, Jr., holiday.

The SBA stated that the PPP loan portal will officially be open to small, eligible lenders; who have $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021.

Additionally, the PPP portal will be fully open to all participating PPP lenders on Tuesday, January 19, 2021. Participating lenders will be able to submit both First and Second Draw applications on this date.

SBA Administrator Jovita Carranza commented on the reopening of the program.

“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,” said Carranza. “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. I strongly encourage America’s entrepreneurs needing financial assistance to apply for a First or Second Draw PPP loan.”

Specifically, First Draw PPP Loans are for those borrowers who did not receive a PPP loan before August, 8, 2020; during the first round of the program that ran from March to August 2020.

The following entities affected by COVID-19 may be eligible for PPP loans.

  • Sole proprietors, independent contractors and self-employed individuals
  • Any small business concern that meets SBA’s size standards
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization or tribal business concern (sec.13(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees
    • Meets SBA industry size standard of more than 500
  • Any business with a NAICS code that begins with 72

Second Draw PPP loans remain designated for eligible small businesses with 3000 employees or less, that previously a First Draw loan and will use or have used the full amount only for authorized uses. These businesses must also demonstrate a minimum 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The SBA stated that the maximum amount of a Second Draw Paycheck Protection Program loan is $2 million.

The first round of the Paycheck Protection Program approved over 5.2 million loans totaling in over $525 billion, with an average loan size of $100,729.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.