SBA Now Accepting PPP Applications
On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (“CCA”), a $2.3 trillion spending bill that includes $900 billion in stimulus relief. The Act required the Small Business Administration (“SBA”) to reopen the Paycheck Protection Program (“PPP”). See our previous articles summarizing the CCA and the Regulations adopted thereunder.
On January 11, 2021, the SBA opened up applications for First Draw borrowers, but only for those that apply for new loans through certain community banks and credit unions. Applications for Second Draw borrowers that apply through certain community banks and credit unions will open on January 13. The SBA has not yet announced when applications will reopen for larger lenders. This layered approach reflects the SBA’s goal of increasing access for minority, underserved, veteran, and women-owned business concerns.
The revised First Draw Application can be found here and the new Second Draw Application can be found here. Borrowers may also wish to consult the recently published reference summaries for First Draw Loans and Second Draw Loans on their website. These one-page summaries provide a snapshot of the requirements for each program.
When analyzing eligibility, compliance, or other issues related to PPP loans, both lenders and borrowers should ensure they have consulted the proper sources. If you have any questions regarding the SBA PPP loans, or other aspects of the CARES Act, please contact a Baird Holm LLP attorney.