The Paycheck Protection Program Continues to Provide a Lifeline to Small Businesses

The U.S. Small Business Administration re-opened the Paycheck Protection Program on January 11 with $284 billion appropriated through the Economic Aid Act. As of Feb. 15, nearly 1.7 million loans valued at more than $125 billion have been approved this round. This includes 51,025 PPP loans valued at more than $2.8 billion approved in Georgia.

SBA is continuing to address potential barriers to access to capital for minority-, veteran-, and women-owned businesses along with other underserved small business segments. The current round of PPP was rolled out in phases and prioritized access to community financial institutions that specialize in servicing these communities. When PPP re-opened, access was initially granted exclusively to community financial institutions the first few days. At least $15 billion was set aside for PPP lending by CFIs, which include community development financial institutions, minority depository institutions, SBA certified development companies and microloan intermediaries. Additionally, the SBA, as needed, will set aside dedicated hours to process and assist our smallest PPP lenders with their PPP loans as well as match small businesses with these institutions.

Here is additional information about the current round of PPP:

  • Eligibility: Businesses that meet SBA size standards, independent contractors and 501(c)(3) nonprofits. New entity categories, housing cooperatives, chambers of commerce, and tourist/visitor bureaus are also eligible.
  • Funding: First time borrowers with 500 or fewer employees can still apply for PPP loans up to $10 million. Second-time PPP borrowers, however, must show at least a 25% revenue decrease in one quarter compared to the same quarter in the previous calendar year. They also must have 300 or fewer employees. Second draw loans are capped at $2 million. Funding for both first and second draw loans are based on payroll for the previous year.

  • Expenses: In addition to payroll, business rent or mortgage interest, and utility expenses, the new PPP funding covers operations expenditures, certain property damage costs, supplier costs, and worker protection expenditures.
  • How to Apply: Borrowers submit their PPP loan applications to SBA-approved lenders. Small businesses and other eligible entities can find a lender using the SBA’s online lender match tool. Lenders must submit applications to SBA for final approval by March 31.

  • Documentation: Required documents depend on the type of business (employees, independent contractor, non-profit, etc.) but generally will include tax filings, government-issued driver’s license or passport, payroll register, bank account information and recent bank statements.

For more information about the Paycheck Protection Program, visit

Terri Denison is the district director for the U.S. Small Business Administration Georgia District. The SBA empowers entrepreneurs and small businesses with resources to start, grow, expand or recover.

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