Second Draw PPP Loans ends March 31, 2021
Second Draw PPP Loans – PPP ends March 31, 2021
- The Paycheck Protection Program ends on March 31, 2021. All eligible entities can apply through a participating lender until then.
- 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.
- 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 the average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x the average monthly 2019 or 2020 payroll costs up to $2 million.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- 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
For more info, visit the SBA website.
Don’t miss the SBDC’s webinar series on PPP to find out who is eligible, how to apply, loan details and how to use the funds. Register for the SBDC’s PPP webinar here.
Update: What If I Never Received a PPP Loan?
For new PPP applicants, the PPP program is open through May 31, 2021 or until the new funding is exhausted.
