PPP First Draw Loans

If you didn't receive a PPP Loan in 2020, you might be interested in a PPP First Draw Loan, and the rules and eligibility requirements are different from those for a PPP Second Draw Loan. The following information is based on the release "SBA and Treasury Announce PPP Re-Opening; Issue New Guidance."

Guidance Information and Resources

First Draw Loan Eligibility Requirements:

  • Business in operation on Feb. 15, 2020, and come from one of the following groups:
  • Businesses with no more than 500 employees
  • Eligible for other SBA 7(a) loans
  • Sole proprietors, independent contractors, and eligible self-employed individuals
  • Not-for-profits, including churches
  • Accommodation and food services operations with fewer than 500 employees per physical location
  • Business leagues, such as chambers of commerce, visitors’ bureaus, etc., and “destination marketing organizations” that have 300 or fewer employees and do not receive more than 15% of receipts from lobbying
  • News organizations or not-for-profit public broadcasting entities with no more than 500 employees per location

First Draw PPP Loans qualify for forgiveness if, during the 8- to 24-week period following loan disbursement:

  • The proceeds are spent on payroll costs and other eligible expenses
  • Employers must attempt in good faith to maintain similar levels of employment and pay that they had prior to the pandemic
  • At least 60 percent of the proceeds are spent on payroll costs


The CARES Act Provides Assistance to Small Businesses

Top-Line Overview of First Draw PPP

Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns

Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act

The information above provides a general summary of the SBA Guidance. Certain borrowers may be subject to different rules and regulations. This is a fluid situation and guidance and regulations may change. While we try to provide accurate information we encourage you to review the full guidance that can be found on the Small Business Administration’s website.