PPP Reopening Dates Announced
The U.S. Small Business Administration and Treasury recently announced that the application window for Paycheck Protection Program (PPP) forgivable loans will open at 9 a.m. ET on Friday, Jan. 15 for lenders with $1 billion or less in assets. The opening applies for both first- and second-draw PPP loans.
The program will begin accepting applications for first- and second-draw loans from large lenders on Tuesday, Jan. 19.
The PPP reopened this past Monday initially for community financial institutions (CFIs) to make loans to first-time PPP borrowers. CFIs were allowed to make second-draw loans to previous PPP recipients starting on Wednesday. The SBA and Treasury granted the early access to ensure minority- and women-owned small businesses were able to apply for funds.
The $284.5 billion in new PPP funding includes set-asides of $35 billion for first-time loans and $15 billion set aside for CFIs.
The SBA released procedural guidance Wednesday night on the requirements for PPP borrowers to reapply for a PPP loan or request an increase to a loan. The procedural notice applies primarily to first-draw PPP loans that were approved by Aug. 8, 2020, which is when the first iteration of the program stopped accepting applications. The guidance does not apply to second-draw PPP loans, which are not eligible for increases or reapplications, or to first-draw loans for which forgiveness payments have already been remitted by the SBA.
For more information, visit tscpa.com/covid19.