Are You Eligible for a 2nd PPP Draw?

Are You Eligible for a 2nd PPP Draw?

January 13, 2021

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The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan.  Second Draw PPP loans can be used to help fund payroll costs, including benefits.  Funds can also be used to pay for mortgage interest, utilities, rent and certain supplier costs and expenses for operations.

You are generally eligible for a Second Draw PPP loan if you meet each of the three following criteria :

  • Previously received a PPP loan and will or have used the full amount only for authorized purposes;
  • Have no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The application for Second Draw PPP loans is attached.  Please feel free to begin completing this application and compile your quarterly profit and loss statements or other records which would indicate gross sales by quarter for 2020 and 2019 to show the 25% reduction.  Although we are accepting applications, we are still waiting for SBA to open the application portal for us to be able to submit applications, which we anticipate to be anytime now.  Please reach out to your Security Bank lender with any additional questions you may have.

( This application is no longer available. )