PPP to be Fully Open Jan. 19

January 14, 2021

Late Wednesday, Jan. 13, the U.S. Small Business Administration announced the final phase of opening the 2nd round of the Paycheck Protection Program (PPP) will be finalized by Tuesday, Jan. 19. The announcement said that small banks can start processing applications on Friday, Jan. 15 with all approved lenders–including large banks–able to begin taking applications on Tuesday, Jan. 19.

This roll-out of the 2nd round was tiered in order to serve those hardest hit first, as dictated by the legislation that established certain set-asides for the program. On Monday, Jan. 11, only community financial institutions were able to start taking first-draw PPP loans (these are smaller banks, credit unions, CDFIs, CDCs and basically any other lender with less than $1B in assets). Wednesday, Jan 13, these same institutions began taking applications for second-draw PPP loans.

It is important to note that SBA is not automating loan number generation as they did before – meaning the process may take a bit longer to protect against fraud in order to give SBA a bit more oversight on the applications.

SBA also yesterday released guidance to lenders outlining the process by which an existing borrower under the first PPP could basically reapply for a higher amount first-draw than was initially approved if the borrower fully repaid the loan before Dec. 27 and no forgiveness payments have been made to the lender on that loan.

SBA has posted applications on their website here:

Please visit NSBA’s COVID-19 page for additional resources and updates.

SBA has a great deal of good information on their website as well if you have questions. You can see a list of approved SBA lenders here.