Who Administers Paycheck Protection Program (PPP) Loans?

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Like the first ‘Paycheck Protection Program,’ the new PPP loans are administered by the U.S. Small Business Administration, specifically under it’s 7(a) program. 

However, these loans are completely different from previous loans, as the business entity need not have been in business for 2 years, show a record of success, morality, competence and the like, which the SBA has traditionally used to determine whether a small business has a likelihood of success — and therefore the ability to pay back the loan.

The loans are specifically provided to help out employees, by granting loans to their employers, and also forgiving most if not all of the loans if properly used. More details are provided in these pages. They’re therefore a gift if correctly used, but it’s a race for employer applicants until the money runs out. That’s exactly what happened in the original PPP program, and overly merely two weeks.

But like other 7(a) loans, the SBA gives responsibility for originating the loans to banks and lending institutions.

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