PPP program opens to all lenders

After re-opening the Paycheck Protection Program to small lenders on Friday, the U.S. Small Business Administration is now opening the program to all lenders. Lenders with under $1 billion in assets were able to put in first and second-draw applications Friday, according to U.S. SBA information, but the online portal is now open to all participating PPP lenders.

Earlier last week, Community Financial Institutions, including Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microloan Intermediaries received access. Friday, nearly 5,000 more lenders — including community banks, credit unions, and farm credit institutions — joined the list, with the SBA planning dedicated service hours for smaller lenders with the full portal opening today.

First Draw PPP Loans are designated for businesses that didn't receive a PPP loan prior to last Aug. 8, after the conclusion of the first round of the PPP that began in March, which helped 5.2 million small businesses, the SBA said.

Second Draw PPP Loans are for eligible small businesses with 300 employees or fewer that received a First Draw PPP Loan and will or have used that loan amount as authorized. After meeting those qualifications, businesses must also show at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of the second draw loans is $2 million.