60,000 Paycheck Protection Program loans approved in the first week
WASHINGTON, DC (Press Release) – Today, the US Small Business Administration announced that it has approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders, for more than $ 5 billion, between the reopening of the schedule Monday, Jan. 11 through 9 a.m.ET through Sunday, Jan. 17. Last week, the PPP provided dedicated access to community-based financial institutions that specialize in serving underserved communities, including small businesses owned by minorities, women and veterans, Monday through Thursday, joined Friday by smaller lenders. Today, January 19, the Paycheck Protection Program is open to all participating lenders. The data from our first week, which first allowed hundreds of community financial institutions to submit applications and then more widely opened up to small banks, shows that we have helped tens of thousands of businesses, ”said SBA administrator Jovita Carranza. “The PPP is taking another good start to help our country’s economy. With PPP reopening today for all first and second draw loan applications, the SBA remains committed to keeping small business workers on the payroll and their doors open during this difficult time. In addition, the SBA has outperformed operationally, issuing guidelines and rules in advance and in accordance with the requirements of the new law, ”added Carranza.
PPP First Draw Loans are intended for borrowers who have not received a PPP loan by August 8, 2020. The first two PPP cycles opened between March and August 2020 were a historic success helping 5.2 million small businesses to keep 51 million American workers at work. PPP Second Draw Loans are for qualifying small businesses with 300 or fewer employees who have already received a PPP First Draw loan. These borrowers will be required to use or had used the full amount of their first draw loan only for authorized purposes and will demonstrate a reduction of at least 25% of their gross revenue between comparable quarters in 2019 and 2020. The maximum amount of one second draw PPP loan is $ 2 million. The Paycheck Protection Program remains open for first and second draw PPP loans until March 31, 2021, as outlined in the Economic Aid Act, or until funds allocated by Congress are exhausted.