Next round of PPP loan applications accepted starting Monday
Outside of U.S. Small Business Administration building. DCStockPhotography / Shutterstock
The next round of Paycheck Protection Program starts today, Crain’s New York reports.
Businesses and nonprofits seeking their first PPP loans will be able to submit loan applications with community financial institutions on Monday. Those same lenders will also be able to accept applications from institutions seeking their second round of loans beginning on Wednesday. Soon after, the process will open up to other lenders.
The decision to ensure community lenders have exclusive access to the loans initially was made in response to criticism that many small businesses were unable to access needed loans before larger companies.
For organizations that haven’t received any support through the program, the eligibility requirements are largely the same. But those seeking a second loan can’t have more than 300 employees and must prove that they had a 25% decline in gross receipts during at least one quarter in 2020.
At least $2 billion in PPP loans have been given to approximately 11,000 nonprofits in New York during the pandemic.