SBA Releases PPP Resources Prior to Launch

Over the weekend, the SBA released new information and resources for guidance for the next round of the Paycheck Protection Program lending starting for certain lenders today.

The new information include instructions for accessing the updated portal that lenders will use to submit applications and originate loans, as well as updated or new application forms for both “first draw” and “second draw” loans. Procedural notices also cover the automatic extension of approved lender status and the process SBA will use to reimburse lenders for EIDL advance amounts that were deducted from forgiveness.

Portal Opening

      • In an announcement Friday and a separate message Sunday, the SBA said the PPP loan portal will open at 9AM (Eastern time) today for new borrowers and certain existing PPP borrowers.
      • Only certain community financial institutions will be able to make first draw PPP loans today and second draw PPP loans this Wednesday, January 13.
      • The Economic Aid Act set aside $15 billion of the new PPP funding for “community financial institutions”.
      • These are defined as Treasury- certified Community Development Financial Institutions, FDIC-designated Minority Depository Institutions, Certified Development Corporations, and certain non-profit or government microloan intermediaries.
      • Therefore, not all community banks are eligible for access today.
      • The PPP will open to all participating lenders shortly thereafter.