The SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First and Second Draw PPP Loans and is currently accepting applications.
The PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Maximum Loan Amount and Increased Assistance for Accommodation and Food Services Businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.
For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
Who May Qualify
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses,
Has no more than 300 employees, and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
How and When to Apply
You can apply for a Second Draw PPP Loan until March 31, 2021. Please contact you financial institution for additional information regarding the loan request process.
All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
You can download the following PPP borrower application form to review the information that will be requested from you when you apply with a lender: