Late Wednesday the SBA announced that in consultation with the U.S. Treasury Department, the agency will re-open the Paycheck Protection Program loan portal to PPP-eligible lenders with $1 billion or less in assets for first- and second-draw applications on Friday, Jan. 15 at 9 a.m. The portal will fully open on Tuesday, Jan. 19 to all participating PPP lenders to submit first- and second-draw loan applications to SBA.
“On Friday, SBA will continue its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions,” the SBA said in a statement. “Moreover, the agency also plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.”
First-draw PPP loans
First-draw PPP loans are for those borrowers who have not received a PPP loan before Aug. 8, 2020. 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, according to the SBA.
Second-draw PPP loans
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 only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020, according to the SBA. The maximum amount of a second-draw PPP loan is $2 million.
Updated PPP Lender forms, guidance, and resources are available on the SBA website and the U.S. Treasury website. Updated information is also available on the New York Credit Union Association’s PPP2 Resource Center.