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Second Draw PPP Loans
Eligible businesses may apply for a Second Draw PPP loan.

Content
Notice: Paycheck Protection Program resumed January 11, 2021 at 9am ET
Loan details
How and when to apply

Notice: Paycheck Protection Program resumed
January 11, 2021 at 9am ET
SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection
Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA will begin accepting
applications for Second Draw PPP Loans on January 13, 2021.
SBA is currently accepting Second Draw PPP loan applications from participating community
financial institutions (CFIs) and lenders with under $1 billion in assets, which includes
approximately 5,000 institutions, including community banks, credit unions, and farm credit
institutions. Lender Match can help you find a participating lender. The program will open to all
lenders on January 19, 2021.
At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a
maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate
income neighborhoods.

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Loan details

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously
received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their
First Draw PPP Loan.
Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also
be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19,
uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier
costs and expenses for operations.

Maximum loan amount and increased assistance for accommodation and
food services businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average
monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and
Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP
Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Who may qualify
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for
authorized uses
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in
2019 and 2020

How and when to apply
You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. To
promote access for smaller lenders and their customers, SBA will initially only accept Second Draw

PPP Loan applications from participating community financial institutions (CFIs). All Second Draw
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PPP Loans will have the same terms regardless of lender or borrower.
To be matched with a participating lender, visit SBA Lender Match.
If you wish to begin preparing your application, you can download the following PPP borrower
application form to see the information that will be requested from you when you apply with a
lender:
Paycheck Protection Program Second Draw Borrower Application Form (released 01-08-21)
Supplemental materials
Top-line Overview of Second Draw PPP Loans
Frequently Asked Questions for Lenders and Borrowers (12-09-20)
Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts
Including What Documentation to Provid (01-19-21)
Frequently Asked Questions for Faith-Based Organizations Participating in the PPP and
Economic Injury Disaster Loan Program
PPP Myth vs. Fact
Affiliation rules
Paycheck Protection Program Affiliation Rules
Interim Final Rule for Applicable Affiliation Rules

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PPP Loan Forgiveness

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