The Small Business Administration (SBA) has announced that lenders with $1 billion or less in assets can start making Paycheck Protection Program (PPP) loans starting this Friday, January 15.
The application window will open for all lenders on Monday, January 18. Earlier this week, the SBA began accepting loan applications from community financial institutions (CFIs) in an attempt to give smaller businesses and minority and women-owned businesses an opportunity to apply first with less competition for lender attention and the money set aside by the Consolidated Appropriations Act (CAA).
The CAA promulgated a new round of PPP loans by appropriating $284 billion for these forgivable loans. Qualified small businesses can apply for these loans up to March 31, 2021 or until funds are exhausted, whichever comes first.
The U.S. Small Business Administration and Treasury released borrower loan application forms last Friday evening. The forms are Form 2483 – Paycheck Protection Program Borrower Application Form which is for first-time qualified PPP loan borrowers, and Form 2483-SD – PPP Second Draw Borrower Application Form which is a new form for qualified PPP borrowers to seek a second draw of the PPP forgivable loan.
Below are links to the SBA website with overviews of both of these loan programs intended to help qualified borrowers decide if these loans are right for them:
Also, below are two procedural notices submitted by the SBA. One further clarifies the changes to the loan applications for loans already made in 2020 to conform with the CCA new round of loans. The other clarifies that the change to the Economic Injury Disaster Loan (EIDL) advances that had to be deducted from the forgivable amount of 2020 loans has been repealed. Reconciling payments will be made to borrowers that have already submitted and received their forgiveness amounts.
- Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only)
- Procedural Notice – SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement
Should you have any questions, please don’t hesitate to reach out to your tonneson + co representative.