60,000 loans approved in the first week of the PPP reopening

The US Small Business Administration approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders, for more than $ 5 billion, between the program reopening on Monday, January 11, and Sunday, January 17.

Last week, the PPP provided dedicated access to community-based financial institutions specializing in serving underserved communities.

As of January 19, the Paycheck Protection Program has been open to all participating lenders.

“The SBA continues to help small businesses across the country access vital funds through the Paycheque Protection Program. The data from our first week, which first allowed hundreds of community financial institutions to submit applications and then opened up more widely to small banks, shows that we have helped tens of thousands of businesses ”, SBA administrator Jovita Carranza said.

“The PPP is on another good start to help our country’s economy. With PPP reopening today for all first and second draw loan applications, the SBA remains committed to keeping small business workers on the payroll and their doors open during this difficult time. In addition, the SBA has outperformed operationally, issuing guidelines and rules in advance and in accordance with the requirements of the new law, ”Carranza said.

PPP First Draw Loans are for borrowers who have not received a PPP loan by August 8, 2020. The first two PPP rounds opened between March and August 2020 were a historic success, helping 5.2 million small businesses. to keep 51 million American workers employed.

Second Draw PPP Loans are for qualifying small businesses with 300 or fewer employees who have already received a First Draw PPP Loan. These borrowers will be required to use or had used the entire amount of their First Draw loan only for authorized uses and demonstrate a reduction of at least 25% in gross revenue between comparable quarters in 2019 and 2020. The maximum loan amount for a loan PPP Second Draw is $ 2 million.

The Paycheck Protection Program remains open for first and second draw PPP loans until March 31, 2021, as outlined in the Economic Aid Act, or until funding is allocated by Congress. be exhausted.

Updated forms, tips and resources for PPP lenders are available at www.sba.gov/ppp.

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