Second Draw PPP Loans
Applications now accepted
The Small Business Administration has reopened the popular Paycheck Protection Program (PPP) loan program allowing more companies to get a forgivable loan for the first time and some hard-hit businesses to apply for a second loan.
After Congress passed a new coronavirus relief bill in December, more funding is now available to offer the original PPP loans and grant second-round loans to businesses with significant revenue declines during the pandemic.
Eligible small businesses that were not able to receive a PPP loan in the first round of funding before the program expired on August 8, 2020 will again have an opportunity to apply for a PPP loan, subject to the same program rules and eligibility criteria that were in place in the two initial rounds of funding.
Similar to first-round loans, the maximum amount a small business may borrow for a first time PPP loan is the lesser of 2.5 multiplied by the borrower’s average monthly payroll costs or $10 million.
In addition, businesses and organizations with fewer than 300 employees and demonstrated revenue declines of at least 25 percent in one quarter of 2020 compared to 2019 can get a second, smaller PPP loan.
First draw loans are capped at $10 Million; second draw loans are capped at $2 Million.
Consecutively, some organizations are now applying for forgiveness of their first-round loans.
First International Bank & Trust is accepting applications for first and second draw PPP loans. Contact your banker at First International Bank & Trust if you have questions about eligibility for PPP funding, application, or forgiveness.