WASHINGTON—The popular federal Paycheck Protection Program will begin reopening Jan. 15 with full availability by Jan. 19.
The program's portal initially will open to lenders with $1 billon or less in assets for first- and second-draw applications at 9 a.m. Jan. 15. Full access to the portal for all PPP lenders occurs Jan. 19 for first- and second-draw loan applications to the U.S. Small Business Administration.
SBA already has granted access to certain so-called community financial institutions, including certified development companies, microloan intermediaries, minority depository institutions and community development financial institutions.
"A second round of PPP could not have come at a better time, and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continuing weathering this time of uncertainty," SBA Administrator Jovita Carranza said in a statement.
First-draw loans are for borrowers not receiving a PPP loans before Aug. 8, 2020, the SBA said. Second-draw loans are for small businesses with 300 employees or less that previously received a first-draw loan. These second-draw recipients must demonstrate at least a 25-percent reduction in gross receipts from comparable quarters in 2019 and 2020. They also need to have appropriately used any previously awarded money.
A company can receive a maximum of $2 million through a second-draw loan.