SBA reopens paycheck protection program to small lenders
WASHINGTON (KOLD News 13) – The U.S. Small Business Administration has announced that it will reopen the Paycheck Protection Program loan portal to eligible lenders with $ 1 billion or less in assets for loan applications. first and second draw on Friday January 15.
The portal will then be fully open on Tuesday, January 19 for all participating PPP lenders to submit first and second draw loan applications to the SBA.
The SBA says it will continue to focus on reaching small lenders and businesses by opening up to about 5,000 additional lenders, including community banks, credit unions and farm lending institutions. The agency also plans to have dedicated service hours for small lenders after the portal fully reopens next week.
“A second round of PPP could not have come at a better time, and the SBA is doing everything possible to ensure that small businesses have the emergency financial support they need to continue through this period of uncertainty.” SBA administrator Jovita Carranza said. “I strongly encourage American entrepreneurs in need of financial assistance to apply for a first or second draw PPP loan.”
“While the program will reopen for all first and second draw borrowers next week, the PPP will allow small businesses to keep workers on their payroll and connected to their health insurance,” Treasury Secretary Steven said. T. Mnuchin.
PPP First Draw Loans are intended for borrowers who have not received a PPP loan by August 8, 2020. The first round of the PPP, which took place from March to August 2020, was a historic success in helping 5, 2 million small businesses to keep 51 million American workers. employee.
Second Draw PPP Loans are for qualifying small businesses with 300 or fewer employees who have already received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and who can demonstrate a reduction in at least 25% of gross revenue between comparable quarters of 2019 and 2020.
The maximum amount of a PPP Second Draw loan is $ 2 million.
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