Some quick updates on the work the SBA is doing to expeditiously and appropriately update guidance and systems for the programs laid out in the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act signed by President Trump on Dec. 27, 2020, that the agency is to administer.

The SBA is continuing to support efforts to benefit the smallest businesses and underserved communities and address potential barriers to access to capital. It is also calling on its lending partners to redouble their efforts to assist eligible borrowers in these communities. We are working to ensure the economic aid is accessible to all that are eligible, including those hit hardest, while protecting program integrity and ensuring as quick release as possible of the aid, and conducting extensive outreach campaigns. 

Following are the most recent updates through Monday morning (January 11th).

• PPP open to community financial institutions as of 9 a.m. EST (news release): The re-opening of the Paycheck Protection Program is designed to efficiently and effectively implement the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and ensure increased access to the PPP for minority-, underserved-, veteran- and women-owned small business concerns.
• Updated PPP applications: Updated applications have been released for First Draw and Second Draw PPP loans. PPP applications must go through participating PPP lenders, who then route them to the SBA for approval. Per this guidance, the SBA continues to call upon our lending partners to assist eligible borrowers in underserved and disadvantaged communities and address potential barriers to access to capital.
• First Draw vs. Second Draw PPP loan: In general, a First Draw PPP loan is for eligible borrowers who did not receive a PPP loan before the program closed in August 2020. See First Draw PPP loan overview for more detail. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts. See Second Draw PPP Loan overview for more detail.
• SBA-backed loan debt relief to be extended (news release): Per section 325 of the Economic Aid Act, the SBA will extend debt relief efforts on SBA-guaranteed loans to continue alleviating adverse economic effects of COVID-19. Since April 2020, the SBA has made over $7.1 billion in payments across approximately 1.8 million loans on behalf of SBA-backed loan borrowers. Guidance will be posted soon.

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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.