A provision in the Consolidated Appropriations Act, 2021, creates a second loan opportunity from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million.
In order to receive a Paycheck Protection Program loan under this section, eligible entities must:
• Employ not more than 300 employees
• Have been in operation on 2/15/2020
• Have used or will use the full amount of their first PPP and
• Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Provides applicable timelines for businesses that were not in operation in Q1, Q2, and Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.
Use the following links to visit the SBA website to download PPP First and Second Draw Borrower Applications.
Paycheck Protection Program First Draw Borrower Application (rev 1/8/21)
Paycheck Protection Program Second Draw Borrower Application (rev 1/8/21)