APPLICATIONS OPEN FOR SECOND ROUND OF PPP LOANS

The application process for the second round of PPP loans officially opened.  These loans are designated for certain eligible borrowers that previously received a PPP loan.  The terms are similar to the original PPP loans.  Loans will be forgivable to the extent they are used to cover payroll costs (including benefits), mortgage interest on business property, rent, utilities, and a few other costs. 

The maximum loan amount is 2.5 times average monthly 2019 or 2020 payroll costs, up to $2 million.  Accommodation and Food Services industries can receive 3.5 times monthly payroll up to $2 million. 

Borrowers may apply for a second PPP loan if they: 

  • Previously received a First Draw PPP Loan, and will or have used the full amount only for authorized uses

  • Have no more that 300 employees; and

  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Only a limited number of lenders are participating in the second round of PPP loans so far, but we expect that number to grow.  To find a participating lender, visit the SBA’s Lender Match page here.

Clarissa Heneghen