PPP Second Draw Loans & Preliminary Application

If you received a PPP Loan in 2020 and will be applying again, this is called a PPP Second Draw Loan, and the rules and eligibility requirements are different from those for a PPP First Draw Loan. The following information is based on the release "SBA and Treasury Announce PPP Re-Opening; Issue New Guidance." Please complete the Preliminary Application to ensure we follow up with you when we start accepting applications.

Guidance Information and Resources

Second Draw Loan Eligibility Requirements:

  • Previously received a First Draw PPP Loan and will/has used the full amount only for authorized purposes
  • Can demonstrate at least a 25% reduction in gross revenue between the same quarters in 2020 and 2019 OR at least a 25% reduction in gross revenue in 2020 from 2019
  • Has no more than 300 employees

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

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan proceeds are spent on payroll costs and other eligible expenses
  • At least 60 percent of the proceeds are spent on payroll costs


The CARES Act Provides Assistance to Small Businesses

Top-Line Overview of Second Draw PPP

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

Interim Final Rule on Second Draw PPP Loans

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.