The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, announced the SBAC would be re-opening the Paycheck Protection Program (PPP) loan portal on January 11, 2021. As part of its commitment to underserved small businesses and to addressing potential access to capital barriers, SBA announced it would initially grant PPP access exclusively to community development financial institutions (CDFIs) that typically serve these concerns.
As a CDFI with a mission to serving small businesses in Savannah and surrounding areas, Small Business Assistance Corp. (SBAC) began accepting applications for First Draw PPP loan applications on January 12, 2021. A First Draw PPP loan is for those borrowers who have yet to receive a PPP loan before the program closed in August 2020.
On Jan. 15, 2021, SBAC will begin accepting applications for Second Draw PPP loans. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and has suffered a 25% reduction in gross receipts.
The re-opening of the SBA PPP loans was designed to implement the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and to ensure increased access to the PPP for minority-, underserved-, veteran- and women-owned small business concerns.
“This second round of funding comes at a critical time, as small businesses in our community brace for another year of business being impacted by the pandemic, including the cancellation of the St. Patrick’s Day festivities,” said Tony O’Reilly, President of SBAC. “As a local CDFI, SBAC is committed to assisting all eligible borrowers to access these loans, especially those in underserved and disadvantaged communities.”
Eligibility requirements, loan details, and online application forms can be found at www.sbacsav.com. Applications will remain open until March 31, 2021, subject to availability of funds.