01/13/2021: Paycheck Protection Program Re-Opening to Small Lenders on Friday, January 15th
January 14, 2021
SBA Re-Opening Paycheck Protection Program to Small Lenders on Friday, January 15 and All Lenders on Tuesday, January 19
January 13, 2021 | Release Number 21-07
Lenders with $1 Billion or Less in Assets Will be Able to Submit First and Second Draw PPP Applications on Friday – Continuing Dedicated Access for Community-Based Lenders
WASHINGTON – The U.S. Small Business Administration, 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, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
Earlier in the week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.
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. Moreover, the agency also plans to have dedicated service hours for these smaller lenders after the portal fully re-opens next week.
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|And, As Always, YOUR Prattville Chamber Is Here To Help Keep You Informed!
The Payroll Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. And, terms have been revised to make the program more attractive to restaurants, hotels and other industries severely impacted by limits on in-person business.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
Business owners might be eligible for a forgivable loan of up to 3.5x monthly payroll expenses if employee retention criteria are met and the funds are used for eligible expenses, such as: Payroll, Rent, Mortgage Interest, Utilities, PPE (masks, gloves, etc.), Heat lamps, Software, and MORE!
KEY PPP Updates Include:
A Borrower Is Generally Eligible For A Second Draw PPP Loan If The Borrower:
|SBA Is Currently Offering:|
Contact U.S. Small Business Administration at Press_Office@sba.gov or (202) 270-3876