Paycheck Protection Program (PPP) Second Draw Loan
The Paycheck Protection Program now allows certain eligible borrowers who previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loans.
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.
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:
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
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.