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Paycheck Protection Program for Small Businesses

Posted on: January 12, 2021 - 11:29am

Paycheck Protection Program (PPP) Opens January 11, 2021 for small businesses

The Paycheck Protection Program (PPP) loans opens on January 11, 2021 for small businesses. The SBA announced late last week that the program will open starting Monday, Jan. 11. Please take note that this is a TIERED OPENING – not all banks will be able to begin taking applications then.  The PPP is prioritizing small businesses, and these are loans issued by approved lending institutions, that are forgiven if the applicant meets certain criteria.  Please go the SBA web site for more information and application process.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/pa...


What this means:

  • Larger banks will most likely NOT be opening up their application process until later in the week;
  • On Monday, Jan. 11, only community financial institutions will be able to start taking first-draw PPP loans (these are smaller banks, credit unions, CDFI's and basically any other lender with less than $1B in assets);
  • On Wednesday, these same institutions will be allowed to start taking applications for second-draw PPP loans;
  • SBA is planning to post the new application sometime this weekend so borrowers can get an idea of what's required ahead of the formal application process opening up next week; and
  • SBA is telling us that loan number generation will NOT be automatic as before – meaning the process may take a bit longer to protect against fraud, please be patient.
  • This tiered roll-out is designed to serve those hardest hit first, as dictated by the legislation overseeing this new round of PPP.

Ongoing Assistance for Information

Below are various resources the National Small Business Association has provided in the last week to provide further assistance.

  • On Wednesday 1/6/2021, the NSBA held a webinar about PPP – you can view that here.
  • On Thursday 1/7/21, NSBA posted an initial analysis on the regulations here.
  • Friday 1/8/2021, the NSBA posted an update on the roll-out of the program here.
  • The NSBA provided a more detailed analysis of the regulations here.

 

Link to Small Business Administration for more information, application, questions and answer, etc.

The SBA has a great deal of good information on their website as well if you have questions. 

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

 

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