The pandemic continues to create financial hardships for the nation’s small businesses.
The U.S. Small Business Administration announced Jan. 19 it approved approximately 60,000 PPP loan applications totaling $5 billion, submitted by nearly 3,000 lenders between Jan. 11 and Jan. 17. The government announced Jan. 11 that $15 billion was available for another round of loans.
“The SBA continues to help small businesses across the nation access vital funds through the Paycheck Protection Program,” said Jovita Carranza SBA administrator. “Data from our first week which first allowed hundreds of community financial institutions to submit applications, then opened wider to small banks, demonstrate that we have helped tens of thousands of businesses.”
Carranza said the PPP program is off to another strong start to boost the nation’s economy.
The latest round of PPP loans is open to first draw borrowers who have not received a PPP loan before Aug. 8, 2020. The first two PPP rounds open between March and August 2020 assisted 5.2 million small businesses keep 51 million Americans employed, the SBA said.
Second draw PPP loans are for eligible small businesses with 300 employees or less and that previously received a first draw PPP loan.
These borrowers must have used the full amount of their first draw loan only for authorized uses and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020, the SBA said. The maximum amount of a second draw PPP loan is $2 million.
The Paycheck Protection Program remains open for first and second draw PPP loans until March 31.
Additional information on the program is available on the SBA’s website at www.sba.gov/ppp.
