Beginning January 13, 2021, second draw applications will be accepted for the SBA Paycheck Protection Program. 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.
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 (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
Second Draw Application Eligibility Requirements (must meet all):
- 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.
Application Period:
The application window for Second Draw PPP Loans runs now through March 31, 2021. SBA is currently only accepting applications from participating community financial institutions to promote access for smaller lenders.
How to Apply:
- Complete the PDF application and prepare requested information here
- Find a participating lender to submit your application here
First Draw PPP Applications:
First Draw PPP Loans reopened for applications the week of January 11, 2021. Information on First Draw PPP Loans can be found by clicking here.
