The Paycheck Protection Program (PPP) is now fully reopened to all participating PPP lenders for first and second-draw loans.
Initially, the PPP was reopened for Community Financial Institution and Minority Depository Institutions as part of the government’s effort to serve the minority and underserved small businesses that missed the first round of the PPP. Then, on January 15, the program was opened to lenders with $1 billion or less, such as credit unions, community banks, and farm credit institutions. Today marks the first day that PPP applications will be open to everyone seeking a first or second-draw loan.
First-draw loans are available for those who have not received a PPP loan before August 8, 2020. Second-draw loans are available to applicants who have already received a PPP loan and will use or have used the full amount for authorized uses, have 300 employees or less, and can demonstrate at least a 25% reduction in gross receipts between quarters in 2019 and 2020. The cap of the second-draw loan is $2 million.
Check with your lender by either contacting them directly or visiting their website to see if they are accepting applications yet and if not, when they will be.
For more information on how to access either a first-draw or second-draw loan, check out our webinars hosted by PPA CFO, Scott Kurkian: https://www.ppa.com/inittogether/resources.