For people who have previously received a first round of the PPP loan, you can still apply for the second draw of the loan. Check out the SBA PPP loan round 2 application portals listed below.
Also, see the eligibility and qualification for the PPP second draw.
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SBA PPP Round 2 Application
Certain qualifying borrowers who have previously received a PPP loan are now eligible to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan.
Through PPP loans, you can finance draw No. 2 Payroll costs, including benefits. Mortgage interest, rent, utilities, worker protection costs associated with COVID-19, uninsured property damage charges caused by looting or vandalism in 2020, and some supplier costs and expenses for operations are all possible uses for the funds.
The maximum loan amount of SBA PPP loan round 2 is 2.5 times the average monthly 2019 or 2020 payroll costs up to $2 million for most borrowers. The maximum loan amount for a Second Draw PPP loan for borrowers in the Accommodation and Food Services industry (use NAICS 72 to confirm) is 3.5x the average monthly 2019 or 2020 payroll expenditures up to $2 million.
SBA PPP 2 Eligibility
You can be eligible for the PPP second draw if you:
- Received a First Draw PPP loan in the past and will or has used the full payment for allowed purposes.
- Can show a decline in gross receipts of at least 25% between comparable quarters in 2019 and 2020.
- Has a staff of no more than 300 people.
How to Apply for SBA PPP Round 2
If you want to start preparing your SBA PPP loan round 2 application, you can download the PPP borrower application form to understand what information required for your application with a lender
Check out the application forms here.
PPP Loan Forgiveness
According to current SBA guidelines, qualifying borrowers who take out First Draw PPP loans are eligible for full loan forgiveness if they meet the following conditions throughout the 8- to 24-week coverage period after disbursement.
- The SBA will forgive the loan amount you use for wages, rent, mortgage interest, or utility costs for up to 24 weeks after you get the loan.
- Until the approval of your loan forgiveness application, all payments (principal, interest, and fees) will be postponed. However, interest will continue to accrue throughout this period.
- If your workforce and payroll remain consistent with pre-COVID levels, you may qualify to have up to 100% of your debt canceled.
- Any balance that is not forgiven will be treated as a two-year loan with a 1% fixed interest rate.
To apply, click here.
