TODAY'S PAPER
Good Morning
Good Morning
BusinessCoronavirus

PPP loan approval process opens for all lenders on Tuesday, SBA says

The SBA, which this week began approving new PPP loans for minority- and woman-owned businesses, plans to open the process to all lenders starting Tuesday.

The U.S. Small Business Administration announced Thursday that all banks and other lenders will be able to submit applications for the federally guaranteed loans to the online approval portal beginning next week.

Since Monday, Jan. 11, the agency has only considered applications from community financial institutions that make loans to minority- and women-owned businesses and those in low-income neighborhoods. It's responding to complaints that the smallest of small businesses had great difficulty in securing PPP loans last year.

The latest version of the PPP consists of loans of up to $10 million for borrowers with 500 or fewer employees and a second loan for borrowers who exhausted their first loan. To be eligible for a second loan, the borrower must have 300 or fewer employees and report a revenue decline of 25% or more in one three-month period last year compared with the same period in 2019, The second loan is up to $2 million per applicant, said Matt Coleman, a spokesman for SBA's Region II, which includes New York State.

The deadline for securing a first or second PPP loan is March 31, he said.

SBA also said Thursday that lenders with assets of $1 billion or less may begin submitting PPP applications on behalf of borrowers, starting on Friday, Jan. 15. The decision affects about 5,000 community banks, credit unions and farm credit unions, officials said.

The agency "is making every effort to ensure small businesses have the emergency financial support they need to continue weathering this time of uncertainty," said outgoing SBA administrator Jovita Carranza.

The latest version of the PPP consists of more than $284 billion in federally guaranteed loans with an interest rate of 1% and five-year term.

More information is available at sba.gov/ppp.

A note to our community:

As a public service, this article is available for all. Newsday readers support our strong local journalism by subscribing.  Please show you value this important work by becoming a subscriber now.

SUBSCRIBE

Cancel anytime

More news