While this is an ever-changing situation regarding the latest PPP news, here is what we do know regarding the timeline of new funding in 2021.
To enable access for smaller lenders, the SBA will initially only accept First Draw loan applications from local institutions starting on January 11, 2021. The full rollout of PPP will open to all participating lender shortly thereafter. The good news is at least $15 billion is being set aside for First Draw loans to eligible small businesses with a maximum of 10 employees or for loans of $250,000 or less.
Second Draw PPP Loan Applications will be accepted from community lenders for eligible borrowers in low- or moderate-income neighborhoods. At least $25 billion is being set aside for eligible businesses with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. The PPP will open to all participating lenders for Second Draw PPP Loans shortly thereafter.
March 31, 2021
The program for both new first time loans and second draw loans will remain open through March of 2021.