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At first, only community financial institutions (such as: Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries) will be able to make First Draw PPP Loans on Monday, Jan. 11, followed by Second Draw PPP Loans on Wednesday, Jan. 13. Shortly after that, the PPP will be open to all participating lenders.
The goal of PPP is to offer loans to businesses (especially small businesses) in order to help them keep their workforce employed throughout the current pandemic. The first round of PPP loans was offered in early 2020. This round of the PPP is authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021.
The SBA, in consultation with the U.S. Treasury Department, will open the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. When the PPP loan portal system opens, it will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
Coconino County is holding a Paycheck Protection Program and Disaster Assistance Webinar on
Tuesday January 12
NH Business Review
Participation by local banks on hold as SBA draws up guidance
January 11, 2021
Amy Bassett, newly named director of the U.S. Small Business Administration’s New Hampshire district office.
Although Monday is the first day to apply for the new Paycheck Protection Program, most businesses in New Hampshire still have to wait or apply out of state.
That’s because, for now, the U.S. Small Business Administration is only allowing Community Financial Institutions to process the loans at this point, and there are no such institutions set up to take PPP loan applications in New Hampshire.
The SBA and Treasury Department said community financial institutions will be able to make PPP Loans to first-time borrowers on Monday. Then, on Wednesday, the lenders can offer PPP loans for second-time borrowers. The PPP program will open to all participating lenders shortly thereafter.
The SBA also said it will direct lender match borrower inquiries to small lenders who can aid traditionally underserved communities.
In addition, senior administration officials said there will be a time lapse between when applications are submitted by lenders and when they receive a lender loan number to ensure compliance, and it is unlikely loans will be approved same day.
Struggling minority-owned businesses were kept waiting until the last minute for PPP loans
Kevin ShalveyJan 3, 2021, 22:17 IST
President Trump signed the CARES Act, which contains the Paycheck Protection Program, into law on March 27, 2020.Alex Wong / Getty Images
Many
minority-owned businesses were left waiting for funds until the final weeks of the Paycheck Protection Program, according to an analysis from The Associated Press. Many of our businesses were being turned down in the first and second round of funding. That caused application fatigue and frustration, Ron Busby, president of the US Black Chambers, told AP.
The new $900 billion
coronavirus relief bill includes $284 billion in