The Paycheck Protection Program

(PPP SBA 7a)

Updated on 5/5/21

Updated on 5/5/21:  PPP Funds have been exhausted and the application portal is now closed. 

After more than a year of operation and serving more than eight million small businesses, funding for the bi-partisan Paycheck Protection Program has been exhausted. The SBA will continue funding outstanding approved PPP applications, but new qualifying applications will only be funded through Community Financial Institutions, financial lenders who serve underserved communities. The SBA is committed to delivering economic aid through the many COVID relief programs it is currently administering and beyond.

Learn more here.

Updated on 3/29/21:  An additional $7.25 billion is now available from the Paycheck Protection Program (PPP). The current deadline to apply is March 31, 2021, but is expected to be extended to May 31, 2021.

  • If you have received other funding from the SBA such as EIDL, and/or plan to apply for the Shuttered Venues Operators Grant or the Restuarant Revitalizations Fund Grant, this comparison chart by the SBA is helpful to understand the criteria of each program and how they impact each other's funds. 

Updated on 3/3/2021: The Paycheck Protection Program FAQ document has been updated.
Questions 57-65 were updated on March 3, 2021. 

President Biden has also announced additional program changes to make access to PPP loans more equitable.

Changes that were announced on 1/11/21:

  • This round of the PPP will continue to be processed through participating financial institutions and will be available through March 31, 2021 for up to $284 billion.

  • 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.

  • A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan and used the full amount of their First Draw PPP loan on authorized expenses, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts.

  • Visit the PPP Loan website for full details on the First Draw, Second Draw, Eligibility, Applications, Forgiveness Application and Process.

    • Also review the latest FAQs.

  • Key PPP updates include:

    • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;

    • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;

    • The Program’s eligibility is expanded to include qualifying 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;

    • The PPP provides greater flexibility for seasonal employees;

    • The maximum amount for a First Draw loan is $10 million and for a Second Draw loan is $2 million;

    • Certain existing PPP borrowers can request to modify their First Draw PPP loan amount;

    • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP loan; and

    • In order to be eligible for the Shuttered Venue Operators Grant (SVOG), which is not yet open for applications, applicants must not have received a PPP loan on or after December 27, 2020.

  • A borrower is generally eligible for a Second Draw PPP loan if the borrower:

    • Previously received a First Draw PPP loan and will or has used the full amount only for authorized uses;

    • Has no more than 300 employees; and

    • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Want to familiarize yourself further with the Paycheck Protection Program before you apply?

  1. Visit the SBA's PPP website and select:

    • First Draw PPP Loans (for first-time program participants)

    • or Second Draw PPP Loans ( beginning 1/13/21 for certain businesses who have previously received a PPP loan).  

  2. Review the full details of whichever draw you select:

    • PPP loan details, who qualifies, the application process, the application itself, and supplemental materials (including FAQs) 

  3. If you need to find a participating lender, you have two options:

    1. Use the LenderMatch free online tool to help identify a lender near you in 2 days

    2. View the participating lenders in your area via a map/zip code search  

      • Note: Small business owners must apply for PPP through an existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.

  4. Review the PPP Loan Forgiveness page before you apply 

    • Review the PPP Loan forgiveness terms for First Draw vs Second Draw PPP loans ​

    • Note the steps for how and when to apply for loan forgiveness with your PPP Lender 

    • Review the PPP Forgiveness forms and instructions 

  5. The SBA is also providing informational materials in other languages to assist non-English speakers with completing their applications.  ​

    • Note: Many SBA programs, including the Paycheck Protection Program, require you to work with a bank, credit union, or other types of lenders that may not be able to accept materials or provide customer support in languages other than English.  Thus, applications must be submitted in English. All documents provided are for informational purposes only.

  6. Additional information:

    • The SBA has set up a call center for lenders having issues related to PPP: (833)-572-0502.

    • If interested in applying for the PPP loan, you must consult with either your current or a local lender as to whether it is participating in the program.

    • Applications are accepted through local lenders/banks that are SBA 7(a) approved, not the SBA, not the SBDC. ​