By initially granting PPP access exclusively to community financial institutions (CFIs), the SBA is targeting underserved small businesses through the scheme.
A total of over $15bn has been set aside for additional PPP lending by CFIs in an effort to “efficiently and effectively implement the economic aid to hard-hit small businesses”, as well as ensuring access to the funds for “minority, underserved, veteran, and women-owned small business concerns”.
The loan portal commenced by accepting first draw PPP loan applications, open to those institutions that did not receive a PPP loan before the program closed in August 2020.
Those first draw participating CFIs constituted roughly 10% of all PPP participating lenders in 2020, according to the SBA.
A second draw PPP will be opened up to participating CFIs from 13 January, targeting eligible borrowers who have previously received a PPP loan.
Those eligible will also include companies that “generally have 300 employees or less” and have “suffered a 25% reduction in gross receipts”.
The SBA has also called upon its lending patterns to widen their efforts in assisting eligible borrowers in disadvantaged communities.