LAS VEGAS (KLAS) – About 60,000 loans have been approved since the paycheck protection program reopened on Monday, Jan. 11, according to the US Small Business Administration (SBA).
PPP loans, a vital lifeline for small businesses trying to survive during the COVID-19 pandemic, were initially limited to certain lenders. But the SBA has now opened to all participating lenders, a press release said on Tuesday.
“The PPP is off to another good start to help our country’s economy,” said Jovita Carranza, administrator of the SBA. “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. “
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 employed, the SBA said. .
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 demonstrate a reduction of at least 25% in their gross revenue between comparable quarters in 2019 and 2020.
The maximum amount for a second-draw PPP loan is $ 2 million.
The Paycheck Protection Program remains open for first and second draw PPP loans until March 31, as outlined in the Economic Aid Act, or until funds allocated by Congress are exhausted.