Image via flickr user Jernej Furman
Written by The Business Journal Staff
In the first week of the second round of the Paycheck Protection Program (PPP2), 60,000 loans were approved natinwide. The 60,000 loans submitted Jan. 11-17 by almost 3,000 lenders totaled more than $5 billion. The U.S. Small Business Administration gave underserved businesses a head start, benefiting minority, women and veteran-owned businesses.
The announcement came Tuesday as the PPP was opening up to all participating lenders. First access to community financial institutions began last week.
“The SBA continues to help small businesses across the nation access vital funds through the Paycheck Protection Program. Data from our first week, which first allowed hundreds of community financial institutions to submit applications, then opened wider to small banks, demonstrate that we have helped tens of thousands of businesses,” said SBA Administrator Jovita Carranza.
Now all first and second draw PPP loans are available to be handed out. First draw is for borrowers who have not yet received a PPP loan from the first round, and second draw is for second-time borrowers who meet the new qualifications. The first round of PPP helped 5.2 million businesses and kept 51 million Americans employed.
“The PPP is off to another great start helping our nation’s economy. With PPP re-opening … 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. Moreover, the SBA over-performed operationally, issuing guidance and rules in advance and in alignment with the new law’s requirements,” Carranza added.
PPP2 will remain open until March 31, 2021 or until funding runs out. The total funding is $284 billion.