With the new $284 billion Congressional appropriation for small business relief, the federal Paycheck Protection Program (PPP) re-opened the week of January 11 for new borrowers and certain existing PPP borrowers.
To promote widespread community access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP program will open to all participating lenders shortly thereafter.
Eligible lenders of the first two draws of PPP loans are one of four types:
- Community Financial Development Institution (CDFI)
- Minority Depository Institution (MDI)
- Community Development Corporation (CDC)
- Microlender Intermediary
In the new rounds of PPP, businesses that use an agent to file their PPP applications will be responsible for covering the corresponding expense for their service. In the 2020 PPP allocations, the lender paid that fee; however, businesses are now responsible for the fee and cannot use PPP funds to reimburse themselves. For PPP applicants that have previously received PPP loans, the financial institution which processed last year’s loan is your best place for you to begin new inquiries.
Finally, to help guide you through the process, the following links provide detailed information for each corresponding element of the federal stimulus: