IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program until March 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. New rules also prioritize smaller community lenders to further assist struggling small businesses and underserved communities. Start your PPP loan application now!
In this 2-minute read:
- New SBA / PPP rules as of 4/26/2020 set a max per lender of 10% of the available “pot” of money
- Larger banks may hit their maximums and be cut off from further PPP loan approvals
- It is unlikely that smaller lenders will hit their maximum
On Sunday, April 26, the SBA and Treasury announced that they are instituting a maximum dollar amount of 10% of PPP funding authority that any single lending institution can originate.
This means banks and lenders with larger pools of PPP loan applications may be cut off at some point. The E-Tran system started processing loans again for the second round of PPP funding, totaling $310 billion, on Monday, April 27, 2020.
This could mean many businesses who’ve had their PPP applications approved by larger lenders won’t get funded. If you’re concerned about this possibility, you can apply via a smaller lender.
Get your PPP loan or second draw PPP loan through Womply! Womply has helped over 200,000 businesses get their PPP funding. It’s free to apply for a PPP loan, and Womply can help connect you with an SBA lender that’s right for you! Start your PPP application.
If I have submitted my PPP application via a large lender who may hit their maximum, should I reapply with a smaller lender?
The SBA added a rule as of April 26, 2020 that caps each lender at 10% maximum access to PPP funds. The technical implementation details aren’t clear (and could be complex).
However, as a result of the SBA’s system updates and details of how the additional rounds of PPP funding are allocated, you now have almost no risk of receiving more than one loan for the same tax ID number.
Given the feeding frenzy that usually occurs every time the as the E-Tran system opens again for PPP applications, we think it might be a good idea for you to take the extra time to start your PPP application with at least one of the smaller SBA 7(a) approved lenders Womply is working with.
It’s more work for you (and for us) but it could make the difference between getting approval during this round of funding or not.
Remember: you are not obligated to apply with your bank and the terms everyone receives on the PPP are identical—and it is always free to apply.
If my bank is overwhelmed with PPP applications, how will I get my loan?
How each lender handles excess applications is up to them. It’s possible they might direct them in the background to other lenders, tell their customers to apply elsewhere, or do nothing and hope the government approves more money and their customers might get funded at that time.
Let Womply help you apply for your PPP loans!
As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The deadline is March 31, 2021.
Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!