New wave of Colorado PPP loans could help small businesses during pandemic

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.

Small businesses say PPP loans not flexible enough

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.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp.

Businesses unable to secure a PPP loan last year look to this third wave as an opportunity to finally bring back employees in the new year.

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