Second Draw Loan Applications for PPP Now Open

Second Draw Loan Applications for PPP Now Open

The Small Business Administration and the Department of Treasury released updated guidelines for the PPP to address the legislative changes to the program enacted through the Consolidated Appropriations Act that was signed into law at the end of 2020.

• SBA has announced that second draw loans for certain businesses who have received a PPP loan can now apply for new loans. The deadline for either first or second draw PPP applications is currently March 31, 2021.
• Nonprofits and businesses that qualify for a second draw PPP do not need to officially be forgiven for their first loan prior to applying for a second loan. However, the business must have used or will use their first loan on or before the second loan is expected to be disbursed.
• The guidance also addresses simplified loan forgiveness and the Employee Retention Credit (ERC). Of note, the ERC is now available to employers who did receive a PPP loan.

Below are links to the two Interim Final Rules that were released:

• Rules for PPP forgivable loans (first-time borrowers) and changes due to the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
• Rules for PPP second draw loans