SBA Approves $5B in PPP Loans in First Week
WASHINGTON, D.C. – In the first week since reopening Jan. 11, the roughly 60,000 business have received Paycheck Protection Program loans, the Small Business Administration has announced, with the value of those loans totaling more than $5 billion.
“The PPP is off to another great start helping our nation’s economy. 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,” said SBA administrator Jovita Carranza in a statement. “Moreover, the SBA over-performed operationally, issuing guidance and rules in advance and in alignment with the new law’s requirement.”
In the first week of the new round of funding – between Jan. 11 and 17 – the SBA received applications from nearly 3,000 lenders.
First draw PPP loans are for borrowers who did not receive a loan from the program before Aug. 8, while second draw loans are for those with up to 300 employees and who can show at least a 25% drop in gross receipts between comparable quarters in 2019 and 2020. The maximum loan for second draw borrowers is $2 million.
In the coronavirus relief bill passed in late December, Congress authorized $284 billion for the new round of funding. Businesses can apply for funds through March 31.
Copyright 2021 The Business Journal, Youngstown, Ohio.