SBA issues notice on PPP loan increases

The Small Business Administration (SBA) issued a procedural notice Thursday regarding first draw paycheck protection program (PPP) loan increases. The notice, which impacts any loan that was approved on or before Aug. 8, 2020, details the circumstances under which borrowers may request a PPP loan increase from their original lender.

The PPP program officially reopened Monday, allowing community financial institutions to submit applications for first draw loans. Starting today, lenders with less than $1 billion in assets will be able to submit applications. All other lenders will gain access to the program Tuesday, Jan. 19.

The notice details how lenders can obtain the additional processing fee that is due on the increased loan or reapplication, as applicable.

As outlined in the notice, an increase may be provided to:

 

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