DENVER (KDVR) — A third wave of Paycheck Protection Program (PPP) loans re-opened this week in Colorado to new borrowers and certain existing PPP borrowers.
The First Draw PPP Loans opened Monday and Second Draw PPP Loans on Wednesday. The PPP will open to all participating lenders shortly thereafter.
Through March 31, $284 billon has been authorized for distribution to small businesses in need of funds for job retention and other expenses. Only certain existing PPP borrowers can apply for a Second Draw PPP loan.
“The PPP was an incredible shot in the arm for small businesses last year, and this second wave of financial support will especially be a boost to businesses in rural and underserved communities,” said Dan Nordberg, SBA’s National Director of Rural Affairs and Region VIII Administrator. “With a targeted opening, SBA is prioritizing and extending relief to impacted business owners who need it the most.
In this third wave of PPP, a small business is eligible for a Second Draw loan if it used the full amount of its First Draw PPP for authorized uses, has more than 300 employees and can prove at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
SBA said it is prioritizing and extending relief to impacted business owners who need it the most.
In 2020, 109,170 PPP loans were distributed to Colorado small businesses, totaling approximately $10.4 billion. The average loan size was $95,287.43.
“The pandemic hit, and we were thinking this is going to be something that will just go away in the next couple of weeks,” said Alex Vazquez, owner of Ontrack Builders in Aurora. “If COVID never happened, the company would have hit its first $1 million in growth.”
Vazquez didn’t pursue a PPP loan in 2020, feeling confident he could keep his employees working. The pandemic continued to take a hard hit on the construction industry, and it wasn’t until after the cut-off date that he had to move his employees to part-time work. Vazquez applied for a First Draw PPP Loan, first thing this week.
“I was pretty much already ready,” said Vazquez. “I kept reading and reading and just hoping we get our chance.”
Vazquez hopes to know whether he gets approved within the next two days. If he does, he will be able to move 15 employees back to full-time work again.
“Let’s just say I can’t wait to get them all together to let them know we are back, and we are all going to be functioning the way we were a year ago,” said Vazquez. “That look is going to be priceless.”
For more information on SBA’s assistance to small businesses, visit sba.gov/ppp.