LAS VEGAS (KLAS) — About 60,000 loans have been approved since the Paycheck Protection Program was reopened on Monday, Jan. 11, according to the U.S. Small Business Administration (SBA).
The PPP loans, a critical 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 Tuesday news release said.
“The PPP is off to another great start helping our nation’s economy,” said SBA Administrator Jovita Carranza. “With PPP re-opening today for all First and Second Draw loan applications, the SBA remains committed to keeping small business workers on payroll and their doors open during this challenging time. Moreover, the SBA over-performed operationally, issuing guidance and rules in advance and in alignment with the new law’s requirements.”
First Draw PPP loans are for borrowers who have not received a PPP loan before August 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, the SBA said.
Second Draw PPP loans are for eligible small businesses with 300 employees or less 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, as set forth in the Economic Aid Act, or until Congressionally-appropriated funding is exhausted.