PPP Round 2
The Paycheck Protection Program resumed January 11, 2021 at 9am ET and the SBA began excepting Second Draw PPP Loan applications on January 13, 2021.
The SBA is currently accepting Second Draw PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help you find a participating lender. The program will open to all lenders on January 19, 2021.
Loan details The Paycheck Protection Program (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 employee 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 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 * 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 from January 13, 2021, until March 31, 2021. Click here to start the application.
For more information regarding to First Draw Paycheck Protection Program First Draw, click here.