WASHINGTON, DC (WWTI) – As the Paycheck Protection Program just wrapped up its first week, the SBA has made an update.
The Small Business Administration of the United States announced Tuesday that it has approved about 60,000 PPP loan applications, submitted by nearly three thousand lenders. According to the SBA, these loans were approved for funding of more than $ 5 billion between the reopening of programs from Jan.11, 2021 to Jan. 17, 2021.
The first week of the program was only open to first-draw PPP loans the first few days and second-draw PPP loans in the middle of the week. Specifically, the First Draw PPP Loans were for borrowers who had not received a loan before August 8, 2020.
SBA administrator Jovita Carranza commented on the first week of the program.
“The data from our first week, which first allowed hundreds of community financial institutions to submit applications and then opened up more broadly to small banks, shows that we have helped tens of thousands of businesses.” , Carranza explained. “The PPP is on 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. “
Second Draw PPP Loans are for qualifying small businesses with 300 or fewer employees who have already received a First Draw PPP Loan.
According to the SBA, these borrowers will be required to use or had used the full amount of their First Draw loan only for the permitted uses and have demonstrated a 25% reduction in gross revenue between comparable quarters.
The maximum amount for a second draw PPP loan is $ 2 million.
The SBA also opened the Paycheck Protection Program to all participants on January 19, 2021.
The U.S. Paycheck Protection Program will remain open for first and second draw P3 loans until March 31, 2021.