Previous borrowers of the PPP Loans are getting a second chance. The U.S. Small Business Administration (SBA) has created the Second Draw PPP Loans which will allow eligible borrowers to apply again for more help to fund payroll costs. The deadline for the Second Draw PPP Loan is March 31, 2021.
Loan qualifications for a borrower are the following:
- 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; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
You can download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender:
- Paycheck Protection Program Second Draw Borrower Application Form (updated 03-03-21)
- Paycheck Protection Program Second Draw Borrower Application Form for Schedule Filers Using Gross Income (published 03-03-21)
For more information on the Second Draw PPP Loans from the SBA, click here.
If you or your company have questions or a legal matter related to your business, please contact Anderson Jones Attorneys by email or phone at (919) 277-2541.