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01/13/2021: Paycheck Protection Program Re-Opening to Small Lenders on Friday, January 15th

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January 14, 2021
 

PRESS RELEASE
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.

CLICK HERE TO LEARN MORE!
 
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:
 
  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  •  Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
 
A Borrower Is Generally Eligible For A Second Draw PPP Loan If The Borrower:
 
  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. 
 
SBA Is Currently Offering:
Click Here to Learn More
 
 



Contact U.S. Small Business Administration at Press_Office@sba.gov or (202) 270-3876 
Contact:
Kristi Pieper
kpieper@prattvillechamber.com, 3343911710