SBA Announces Schedule for Opening Portal for First and Second Draw PPP Applications

BY Alex Ayers
1/12/2021 - HVAC Government Affairs

Update 1/14/21: SBA has announced all lenders will be able to submit PPP loan applications on Tuesday, January 19. Small banks and lenders will open on Friday, January 15. 


Most HARDI members interested in first or second draw Paycheck Protection Program (PPP) loans will be forced to wait several days before their lender can submit applications to the Small Business Administration (SBA). As part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, Congress required SBA to prioritize applications from underserved communities that were unable or had difficulty applying for loans in 2020 before opening up the funds to larger lenders.

Yesterday the SBA opened the lending portal for some PPP applicants, specifically only first draw loan applications with community financial institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries. No other applications from any lenders are open at this time.

On January 13th these CFIs will be able to submit second draw loan applications. Second draw loans are limited to eligible borrowers that previously received a PPP loan. Qualifying businesses must have 300 employees or less and suffered a 25% reduction in gross receipts compared to the same period from the previous year.

For HARDI members doing business with more traditional lenders such as large banks and other institutions the SBA has said the lending portal will open a “few days later,” this will likely mean the portal will open between Friday, January 15 and Monday, January 18, but could be delayed or sped up based on how quickly funds set aside for CFIs is used. SBA has said that they do not anticipate PPP running out of funds like the program did in April 2020.


If you have any questions about the COVID relief measures, please reach out to Alex Ayers (aayers@hardinet.org). HARDI will continue to monitor these programs as regulations are released and will update you on relevant information.