60,000 loans approved in first week of relief program | Business

Last week, the program provided dedicated access to community financial institutions that specialize in serving underserved communities, including small businesses owned by minorities, women and veteran from Monday through Thursday and joined Friday by smaller lenders.

As of Tuesday, the Paycheck Protection Program opened to all participating lenders.

Small Business Administration administrator Jovita Carranza said the the administration continues to help small businesses across the nation access vital funds through the Paycheck Protection 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,” Carranza said.

“The (program) is off to another great start helping our nation’s economy,” Carranza said.

With program reopening for all first and second draw loan applications, the administration remains committed to keeping small-business workers on payroll and their doors open during this challenging time, Carranza said.

First draw loans are for those borrowers who have not received a loan through the Paycheck Protection Program before Aug. 8, 2020. The first two rounds open between March and August were successful in helping 5.2 million small businesses keep 51 million American workers employed.

Second draw loans are for eligible small businesses with 300 employees or fewer that previously received a first draw loan. These borrowers will have to use or had used the full amount of their initial loan only for authorized uses and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a second draw loan is $2 million.

The Paycheck Protection Program remains open until March 31, 2021, as set forth in the Economic Aid Act, or until congressionally appropriated funding is exhausted.