The U.S. Small Business Administration re-opened the Paycheck Protection Program loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications today. The portal will fully open on Tuesday to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
SBA is opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions. 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 are for those borrowers who have not received a PPP loan before Aug. 8, 2020. The first round of the PPP ran from March to August 2020.
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. The maximum amount of a Second Draw PPP loan is $2 million.
Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.
