Last updated on May 5th, 2021 at 02:10 pm
Applying for the Paycheck Protection Program Second Draw
| The Small Business Administration (SBA) is opening Round 2 of the Paycheck Protection Program (PPP) on January 19th. The PPP provides loans to small businesses to keep their workforce employed throughout COVID-19. This second round of PPP is administering both First Draw and Second Draw loans. Applications for the second round of the Paycheck Protection Program (PPP) are now open to process your applications quickly and easily. |
| If you received a PPP First Draw loan, and would like to apply for Second Draw: Your application will be processed more quickly by reaching out to the lender who processed your first PPP loan. The majority of our customers did this through several lenders and banks. If that’s you: you need to contact the bank you used for the first round and send the completed application again to them. You’ll also need to provide information showing there was a 25% decrease in revenue either for the full year of 2019 to 2020, or for one set quarter of 2019 compared to the same quarter of 2020. Profit and loss statements will work just fine for this. If this is your first time applying for a PPP loan: If you are applying for PPP for the first time in round 2, or can’t apply with the institution that did your first loan, we’ll be opening up applications through a new partner. We’ll share more details soon. Applications for PPP Second Draw will be open until March 31st. To learn more about changes for this new round, you can take a look at the official Paycheck Protection Program Second Draw page You can also join us several virtual events on all things PPP. |
| You may be eligible for a PPP loan, apply now! The Coronavirus Response and Relief Supplemental Appropriations Act of 2021, a $900 billion relief package, was signed into law on December 27, 2020. The law includes an additional $284.45 billion in funding for Paycheck Protection Program (PPP) loans to help small businesses. To provide certain eligible customers with an easily accessible and timely solution to apply for a PPP loan. |
A PPP recap:
The PPP is a program to help businesses affected by COVID-19. This round is offering First Draw loans to businesses who haven’t yet taken a loan.
Second Draw loans are also available to businesses who need additional funds, with some caveats:
• You must have no more than 300 employees.
• You must be able to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
• You must have employees in the US or be paying yourself as a US employee.
You can learn more about PPP Second Draw here. If you have questions specific to your business, we recommend reaching out to your accountant or lawyer.
Applying for PPP:
• If you received a PPP First Draw loan, and want to apply for Second Draw: Your application will be processed more quickly by reaching out to the lender who processed your first PPP loan.
o Complete the form and send the completed application to your lender.
o You’ll also need to provide information showing there was a 25% decrease in revenue either for the full year of 2019 to 2020, or for one set quarter of 2019 compared to the same quarter of 2020. Profit and loss statements will work just fine for this.
• If this is your first time applying for a PPP loan, or you want to work with a new lender for your second loan to process customers’ applications, you need find reliable lender.
o Go to this application form of the lender you selected.
o If you’ve previously applied for PPP, you will be asked for your First Draw loan information, including the SBA loan number.
o You should receive credentials and an assigned a loan officer from Choice within 1-2 business days.
Good luck!
Update May 2021 on PPP
PPP ran out of funding today
No one expected this (not even White House staff) and it’s incredibly disappointing. More than 1.5m eligible small business owners who applied through selected banks are not yet approved.
We need your help
You must contact President Biden, the SBA, your Senators, and your Representative to tell them you want more PPP funding. If they don’t hear directly from small businesses, independent contractors, and sole proprietors, they will cancel this program forever.
We’re not giving up
We believe that if the President and Senators hear from you, they will act. So some banks will continue accepting and processing PPP applications in anticipation of Congress doing the right thing. We’ll keep working until every legitimate SBA-approved business gets funded. Unlike the big banks, we’re not just going to move on.
More than 980,000 businesses have received PPP through several approved institutions.
