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PPP Re-Opens to Small Lenders Jan. 15, All Lenders on Jan. 19

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 Draw and Second Draw applications on Friday, January 15, 2021 at 9 a.m. EST.

The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First Draw and Second Draw loan applications to SBA.

Earlier this 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, January 15, 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. SBA will also have dedicated service hours for these smaller lenders after the portal fully re-opens next week.

Important Updates to the Paycheck Protection Program:

  • Borrowers can now set their PPP loan’s covered period to be any length between eight and 24 weeks

  • Additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures will be covered

  • Eligibility has expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations

  • The new program provides greater flexibility for seasonal employees

  • Certain existing PPP borrowers can request to modify their first draw PPP loan amount

Who Can Apply for a PPP Loan?

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll.

Eligible entities include small businesses and certain nonprofits with 500 or fewer employees, including:

  • Business entities​

  • Sole proprietors, independent contractors, self-employed individuals​

  • 501(c)(3)​

  • 501(c)(19) veteran’s organizations​

  • Tribal businesses

  • Eligible news organizations​

  • Seasonal businesses

  • Housing cooperatives (must have 300 or fewer employees).

  • 501(c)(6) and destination marketing organizations (with restrictions on lobbying and must have 300 or fewer employees)​

First Draw PPP Loans

SBA reopened the First Draw PPP loans the week of January 11, 2021 with first access to underserved, minority, veteran, and women-owned small businesses. Eligible entities that did not previously receive a PPP loan can apply until March 31, 2021.

  • First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020.

  • Beginning Monday, January 11, 2021, SBA is initially only accepting First Draw PPP loan applications from participating community financial institutions (CFIs), which include: Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. Find a CFI in your area.

  • Paycheck Protection Program lending will fully re-open to all participating PPP lenders on Tuesday, January 19, 2021. You can find a participating PPP lender at

Second Draw PPP Loans

Certain existing PPP borrowers can apply for a Second Draw PPP loan through participating CFIs starting Wednesday, January 13, 2021. Find a CFI in your area.

To qualify for Second Draw PPP loans, businesses must:

  • Have previously received a first draw PPP loan

  • Will or have used the full amount only for authorized uses

  • Have no more than 300 employees

  • Demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

NOTE: The maximum amount of a Second Draw PPP loan is $2 million.

PPP Loan Forgiveness

First Draw PPP and Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8 to 24 week covered period following loan disbursement:

· Employee and compensation levels are maintained

· The loan proceeds are spent on payroll costs and other eligible expenses

· At least 60 percent of the proceeds are spent on payroll costs


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