60K Paycheck Protection Program loans approved in the first week

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FILE – In this April 2, 2020 file photo, a notice of closure is posted at The Great Frame Up in Grosse Pointe Woods, Mich. The government is closing in on the $349 billion lending limit on its Paycheck Protection Program that is sending relief money to the nation’s small businesses. The Small Business Administration says that it has approved more than 1.6 million loans worth more than $339 billion. The program will likely reach its ceiling Thursday, April 16. (AP Photo/Paul Sancya, File)

WASHINGTON, D.C. (WWTI) — As the Paycheck Protection Program just closed out its first week, the SBA has given an update.

The United States Small Business Administration announced on Tuesday that they approved approximately 60 thousand PPP loan applications, submitted by nearly three thousand lenders. According to the SBA, these loans were approved for over $5 billion in funding between the programs reopening on January 11, 2021 through January 17, 2021.

The first week of the program was open only to First Draw PPP loans on the initial days, and Second Draw PPP loans mid-way through the week. Specifically, First Draw PPP loans were for those borrowers who had not received a loan before August 8, 2020.

SBA Administrator Jovita Carranza commented on the first week of the program.

“Data from our first week, which first allowed hundreds of community financial institutions to submit applications, then opened wider to small banks, demonstrate that we have helped tens of thousands of businesses,” shared Carranza. “The PPP is off to another great start helping our nation’s economy. With PPP re-opening today for all First and Second Draw loan applications, the SBA remains committed to keeping small business workers on payroll and their doors open during this challenging time.”

Second Draw PPP loans are for eligible small businesses with 300 employees or less and previously received a First Draw PPP loan.

According to the SBA, these borrowers will have to use or had used the full amount of their First Draw loan only for authorized uses and demonstrated a 25% reduction in gross receipts between comparable quarters.

The maximum amount of a Second Draw PPP loan is $2 million.

The SBA also opened the Paycheck Protection Program to all participating on January 19, 2021.

The United States Paycheck Protection Program will remain open for First and Second Draw PPP loans through March 31, 2021.

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