PPP applications open for more small lenders

ANCHORAGE, Alaska (KTUU) - Beginning Friday, certain lenders are able to submit for first and second draw applications for the Paycheck Protection Program.

The PPP is a loan from the Small Business Administration to help businesses keep employees during the COVID-19 crisis.

SBA is adding 5,000 more small lenders, including community banks, credit unions and farm credit institutions. The initial opening is for eligible lenders with $1 billion or less in assets.

There will also be dedicated service hours for small lenders when the portal fully reopens to all participating lenders to submit loan applications on Tuesday.

“A second round of PPP could not have come at a better time, and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continuing weathering this time of uncertainty,” said SBA Administrator Jovita Carranza in a prepared statement. “SBA has worked expeditiously to ensure our policies and systems are re-launched so that this vital small business aid helps communities hardest hit by the pandemic. I strongly encourage America’s entrepreneurs needing financial assistance to apply for a First or Second Draw PPP loan.”

In the first draw, 5.2 million small businesses employing 51 million people benefited from PPP loans last year, according to the SBA.

Qualifying small businesses that have 300 or fewer employees that got the first draw, may be eligible for a second draw if they can show a loss of at least 25% in gross receipts between comparable quarters of 2019 to 2020; the most they can take out in the second draw is $2 million.

PPP Lender forms, guidance and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.

Alaskans who want more information can also go to the Alaska Small Business Development Center’s COVID-19 Resource page.