PPP Second Draw Loans Available
Paycheck Protection Program Offers Second Round of Loans
The SBA has launched a second round of Paycheck Protection Program (PPP) loans to assist businesses with COVID-related challenges. 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 fund or pay for:
Payroll costs including employee benefits
Mortgage interest
Rent
Utilities
Worker protection costs related to COVID-19
Uninsured property damage costs caused by looting or vandalism during 2020
Certain supplier costs and expenses for operations.
Full Forgiveness Terms
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
The loan proceeds are spent on payroll costs and other eligible expenses; and
At least 60 percent of the proceeds are spent on payroll costs.
How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
To view a list of participating Lenders, Click Here.
Next Steps:
To secure a Second Draw PPP loan, contact your lender to inquire if they are participating. If they are participating, you will need to find out how your bank wants to receive the information. If your bank requires you to submit information via a portal, you will need to give us your portal access information if you would like us to apply for you.
For More information on the PPP Loan Process, visit the SBA Website