(updated 1/13/21) PPP applications re-opened on Monday 1/11 to a select group of recipients, and will open to all lenders starting Tuesday 1/19/21. Due to heavy criticism of PPP round 1 funding going disproportionately to larger established businesses and disproportionately away from minority owned, veteran owned, and other disadvantaged businesses, the SBA has defined a rollout schedule to allow early applications from disadvantaged businesses and the smallest banks. Here’s how it will work:
First Applications Accepted Starting January 11th, 2021
The portal will first open for businesses meeting the following criteria:
- First draw PPP loans only. This means only businesses who have not yet received ANY PPP money ever.
- Community Financial Institutions Only. CDFI’s are not-for-profit lending institutions that favor lending to the smallest businesses, minority-owned, veteran-owned, or impact organizations. As a reminder, most banks and CDFI’s will not accept you for a PPP loan unless you already have a relationship with them.
Second Applications Accepted starting January 13th, 2021
Second draw applications (aka round 2 PPP loans) will be available starting 1/13/2021 to members of CDFI’s only. In doing so, the SBA is giving priority to the smallest businesses, minority-owned, veteran-owned, and impact organizations.
Small Lenders Accepted starting January 15th, 2021
Lending institutions with less than $1B in assets will be allowed into the SBA portal starting Friday 1/15/2021. Again, the SBA is targeting the smallest institutions to give priority to local banks.
General PPP Applications Accepted starting Tuesday January 19th, 2021.
This is when big institutions like Chase and Wells Fargo will first be permitted to accept PPP round 2 applications.
When Can I apply for a PPP Round 2 Loan?
Even though the SBA opens the portal, that does not mean you will be able to apply. The SBA portal is to be accessed by lenders, so if your lender is not ready to accept applications you may need to wait longer. Additionally, without a definitive answer on when general applications begin, it is unknown exactly when your business will be able to apply.
We recommend you speak with your PPP round 1 lender to understand their timeline. In the meantime, start gathering documentation you’ll need so you are prepared to apply. If you are a CFOshare client who qualifies for round 2 funding, we will be reaching out to coordinate this effort. Not sure what documents are required? Check out our article on PPP round 2 details or watch our free webinar below.