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Additional funding available for Paycheck Protection Program

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Small businesses financially impacted by the pandemic have another opportunity to seek assistance through the Paycheck Protection Program.

The U.S. Small Business Administration announced Jan. 11 that it has re-opened the Paycheck Protection Program loan portal.  At least $15 billion is set aside for additional PPP lending by CFIs, the SBA said.

The SBA said when the PPP loan portal re-opened, it initially accepted First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microloan Intermediaries. The lenders represented about 10% of all PPP participating lenders in 2020.

A First Draw PPP loan is for borrowers who have not received a PPP loan before the program closed in August.

The SBA will begin accepting applications for Second Draw PPP loans Jan. 13. A Second Draw PPP loan is for eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and has suffered a 25% reduction in gross receipts.

Additional information on the program is available on the SBA’s website at www.sba.gov/ppp.

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