Courtney Announces Reopening of SBA’s PPP Loan Portal for Small Lenders Starting Tomorrow
WASHINGTON, DC – Today, Congressman Joe Courtney (CT-02) issued the following statement after the U.S. Small Business Administration (SBA) released guidance on the reopening of the Paycheck Protection Program (PPP) loan portal to smaller PPP lenders with $1 billion or less in assets for First and Second Draw applications starting tomorrow, Friday, January 15th at 9:00am ET. The portal will fully open on Tuesday, January 19th, to all participating PPP lenders.
The new round of PPP funding was authorized by the bipartisan Consolidated Appropriations Act of 2021 (H.R. 133), which Courtney voted to pass on December 21, 2020. The new funding will emphasize reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including farm credit institutions, credit unions, and community banks, and by giving small lenders with $1 billion or less in assets the first chance to apply for new funding starting tomorrow at 9:00am ET. The portal opens fully to other eligible lenders on January 19th.
“The bipartisan budget bill we passed in December contained new COVID-19 aid, including a new round of funding for our small businesses through the Paycheck Protection Program,” said Rep. Courtney. “This is a great chance to ensure that the small businesses who really need these dollars most are able to get them. This new round of PPP gives our smaller, more local lenders the first crack at applying for funding, and it opens up to new farm credit institutions, community banks, and more. I welcome any small business owner in our region with questions on how to apply for this new round of support to call my office—my team and I are ready to work with you.”
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan. The new law also provides for First Draw PPPs for certain businesses who did not receive a PPP during the earlier iteration of the program. For more information on these first draw loans, click here.
Key PPP updates include:
· Businesses are now permitted to deduct expenses associated with their forgiven PPP loans,
allowing businesses to take advantage of business deductions they take every year but have paid for this year with a PPP;
· PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24
weeks to best meet their business needs;
· PPP loans will cover additional expenses, including operations expenditures, property
damage costs, supplier costs, and worker protection expenditures;
· The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct
marketing organizations, among other types of organizations;
· The PPP provides greater flexibility for seasonal employees;
· Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount;
· Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
· Previously received a First Draw PPP Loan and will or has used the full amount only for
· Has no more than 300 employees; and
· Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in
2019 and 2020
The new guidance released includes:
· PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned