top of page
Search
Juanita Schwartzkopf
Mar 10, 20211 min read

PPP Loans Second Draw


The current March 31, 2021 deadline is fast approaching for the second draw PPP loans.


The qualifications for the second draw PPP loans are:


  1. Received a first draw PPP loan, and has used or will use it for approved purposes.

  2. No more than 300 employees.

  3. Shows a 25% or more reduction in gross receipts between comparable quarters of 2019 and 2020.


The cap on the second draw loans is $2 million. And the amount of the loan is calculated at 2.5 times average payroll for most NAICS codes, subject to the $2 million cap. For 72 NAICS codes in the Accommodation and Food Services sector the amount is calculated at 3.5 times average payroll, also subject to the $2 million cap.


Here is a link to the second draw PPP loan application. Note that the quarter over quarter comparison on the application is for a one quarter comparison of 2019 / 2020, not for four separate quarters.


Here is a link to the SBA website with answers to basic questions and links to forms:



If you have any questions, please call us and we will walk you through the analysis and options.

Comments

bottom of page