More than 60,000 small businesses get Paycheck Protection loans in first week
WASHINGTON — The Small Business Administration on Friday announced that it had approved approximately 60,000 Paycheck Protection Program (PPP) loan applications submitted by nearly 3,000 lenders, for over $5 billion, between the program’s re-opening on Monday, Jan. 11, at through to Sunday, Jan. 17.
Last week, the PPP provided dedicated access to community financial institutions that specialize in serving underserved communities, including minority- women- and veteran-owned small businesses from Monday through Thursday, joined Friday by smaller lenders.
First Draw PPP loans are for those borrowers who had not received a PPP loan before Aug. 8, 2020. The first two PPP rounds open between March and August 2020 were a historic success helping 5.2 million small businesses keep 51 million American workers employed.
Second Draw PPP loans are for eligible small businesses with 300 employees or fewer and that previously received a First Draw PPP loan. These borrowers will have to use or had used the full amount of their First Draw loan only for authorized uses and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.
The Paycheck Protection Program remains open for First and Second Draw PPP loans until March 31 or until Congressionally-appropriated funding is exhausted.