The PPP Extension Act, signed into law on July 4, 2020, extended the application period for PPP to August 8, 2020.
On Friday, June 19, the Small Business Administration (SBA) announced an online tool dedicated to matching small businesses with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, microlenders, and traditional smaller asset size lenders participating in the Paycheck Protection Program (PPP).
The last day a PPP loan application can be approved is Tuesday, June 30, 2020. There is still more than $100 billion in PPP funds available. The program provides an up to 100 percent forgivable loan to small businesses if certain conditions are met. The passage of the PPP Flexibility Act on June 5, 2020, saw important new changes to the program. Read about those changes here.
Before taking a PPP loan, see ABA’s FAQ on PPP forgiveness, the SBA’s PPP FAQ, and How to Calculate Maximum Loan Amounts by Business Type. Read more on small business assistance from the CARES Act. Also keep in mind that the SBA and Treasury Department are continuously issuing new guidance.
The goal of the newly announced Lender Match tool is to connect small businesses that have yet to apply for or receive a PPP loan with eligible PPP lenders that cater to underserved and disadvantaged communities. During the PPP’s initial rollout, small businesses expressed frustration with the PPP process at large national banks; some large banking institutions were accused of prioritizing applications from existing larger customers instead of the smallest of small businesses.
According to the SBA’s news release, within two business days of entering your information into Lender Match, you will receive an email from lenders you have been matched with. (Note: This does not mean you have been approved for a loan; this is the beginning of the process.) You will see a request to begin an application.
The SBA’s Lender Match is not a new tool, but it was on pause following passage of the CARES Act. Until the June 30 deadline, the tool will only match you with CDFIs and lenders with less than $10 billion in assets. Following the deadline, Lender Match will reopen for all participating SBA lenders. Lender Match can also connect you with other SBA loans like 7(a), 504, Microloans, and Community Advantage.