After reopening the paycheck protection program to small lenders on Friday, the US Small Business Administration is now opening the program to all lenders. Lenders with less than $ 1 billion in assets were able to file first and second drawdown requests on Friday, according to information from the US SBA, but the online portal is now open to all participating PPP lenders.
Earlier last week, community financial institutions including community development financial institutions, minority depositories, certified development companies and microcredit intermediaries were granted access. Nearly 5,000 additional lenders – including community banks, credit unions and farm lending institutions – joined the list on Friday, with the SBA forecasting dedicated hours of service for small lenders with the portal fully opening today. ‘hui.
First-draw PPP loans are intended for businesses that did not receive a PPP loan by August 8, after the conclusion of the first round of the PPP that began in March, which has helped 5.2 million small businesses, the SBA said.
Second Draw PPP Loans are for qualifying small businesses with 300 or fewer employees who have received a first draw PPP loan and have used or used that loan amount as authorized. After fulfilling these conditions, businesses must also show a reduction of at least 25% in gross revenue between comparable quarters in 2019 and 2020. The maximum second-draw loan amount is $ 2 million.