SBA to Open PPP Portal to Lenders with Less Than $1B in Assets on Friday
The Small Business Administration will open the Paycheck Protection Program portal on Friday to lenders with $1 billion or less in assets to begin processing both new and second-draw loan applications. The program will then open to all other lenders on Tuesday, Jan. 19.
The program opened on Monday morning for certain lenders reaching underserved communities, including community development financial institutions and minority depository institutions, to make first-draw loans and was opened to second-draw loans by these lenders on Wednesday.
A procedural notice issued by SBA last week confirmed that lenders that were previously making PPP loans do not need to re-register with SBA to make first-draw or second-draw loans in this round of funding. All participating lenders must register on SAM.gov within 30 days from the date of their first PPP loan disbursement made after Dec. 27, 2020. Read more.
In related news, SBA last night released a notice outlining procedures in the limited range of circumstances when PPP borrowers may reapply for a first-draw loan or request an increase in a first-draw loan. The notice also covers how lenders in these circumstances may obtain an additional processing fee due on the increased loan amount or on a reapplication. Read the procedural notice.