About 60,000 Paycheck Protection Program loans totalling more than $5 billion were approved in the first week that the program reopened, the U.S. Small Business Administration has announced.
The applications came from nearly 3,000 lenders between Jan. 11 and 17.
In this round of loans, community financial institutions were first in line. Those focusing on underserved communities (including minority-, women-, and veteran-owned small businesses) could apply for First Draw PPP loans on Jan. 11, and Second Draw PPP loans on Jan. 13. Then on Jan. 19, the PPP opened to all participating lenders.
First Draw PPP loans are for those borrowers who have not received a PPP loan before August 8, 2020. According to the SBA the first two PPP rounds, between March and August 2020, helped 5.2 million small businesses keep 51 million American workers employed.
For Second Draw PPP loans, borrowers need to show: their revenue is down 25 percent; they have no more than 300 employees; and they previously received a First Draw PPP Loan, using the full amount only for authorized uses.
The maximum amount of a Second Draw PPP loan is $2 million.
The Paycheck Protection Program remains open for First and Second Draw PPP loans until March 31, 2021, as set forth in the Economic Aid Act, or until Congressionally-appropriated funding is exhausted