No, the SBA regulations provide that “[f]inancial businesses primarily engaged in the business of lending, such as banks” are ineligible for SBA business loans, which includes PPP loans. The SBA Standard Operating Procedures also provide that the “SBA cannot guarantee a loan that provides funds to businesses primarily engaged in lending . . . [which] prohibits SBA loans to . . . [[b][/b]b]anks.”

Consequently, banks and other lenders are ineligible for PPP loans.

For resources related to our guidance, please see:

• SBA Regulations, 13 CFR 120.110 (“What businesses are ineligible for SBA business loans? The following types of businesses are ineligible: (a) Non-profit businesses (for-profit subsidiaries are eligible); (b) Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (pawn shops, although engaged in lending, may qualify in some circumstances) . . .”)

• SBA Standard Operating Procedures, 50 10 5(K) — Lender and Development Company Loan Programs, page 104 (“SBA cannot guarantee a loan that provides funds to businesses primarily engaged in lending, investments, or to an otherwise eligible business engaged in financing or factoring. This prohibits SBA loans to: i. Banks . . .”)
   
• CARES Act, Section 1102(a)(2), Paycheck Protection Program (“Increased Eligibility for Certain Small Businesses and Organizations. . . . During the covered period, in addition to small business concerns, any business concern, nonprofit organization, veterans organization, or Tribal business concern described in section 31(b)(2)(C) shall be eligible to receive a covered loan if the business concern, nonprofit organization, veterans organization, or Tribal business concern employs not more than the greater of— (I) 500 employees; or (II) if applicable, the size standard in number of employees established by the Administration for the industry in which the business concern, nonprofit organization, veterans organization, or Tribal business concern operates.”)