How to Apply for a Second PPP Loan

If you’re eligible, you can apply for a Second PPP Loan . Here’s how.

Checkout this video:

Applying for a Second PPP Loan

Check the list of SBA-recognized lenders

The first step in applying for a Second PPP Loan is to check the list of SBA-recognized lenders.

SBA-recognized lenders are banks, credit unions, and non-bank financial institutions that have been approved by the Small Business Administration to participate in the PPP Loan program.

You can find a list of SBA-recognized lenders on the SBA website. Once you have found a lender that you would like to work with, you will need to contact them directly to begin the application process.

When you contact your chosen lender, be sure to ask about any fees they may charge for processing your loan application. Some lenders may charge a small fee, while others may not charge anything at all.

You should also inquire about the interest rates that the lender is currently offering on PPP Loans. Interest rates on Second PPP Loans are currently set at 1%, and they may be slightly higher or lower depending on your chosen lender.

Once you have gathered all of this information, you will be ready to begin the application process for your Second PPP Loan.

Find a lender that offers the PPP loan

To apply for a second PPP loan, you will need to find a lender that offers the Paycheck Protection Program. You may be able to get a PPP loan from the same lender you used for your first PPP loan, but you are not required to do so.

Once you have found a lender, you will need to complete an application for the PPP loan. The application will ask for information about your business, such as your business name and address, the amount of money you are requesting, and how you plan to use the loan funds.

You will also need to provide documentation to support your request for a second PPP loan. This may include documents such as your business’s tax returns, payroll records, and financial statements.

Once you have submitted your application and supporting documentation, your lender will review your materials and make a decision on whether or not to approve your loan. If your loan is approved, you will be asked to sign a promissory note and other loan documents. Make sure you understand all of the terms and conditions of the loan before signing anything.

Gather the required documents

In order to apply for a second PPP loan, you will need to gather the required documents. These include:
-Your most recent tax return
-Personal financial statements
-Your business’s most recent interim financial statements
-A schedule of your business’s outstanding debt
– Documentation of any payroll expenses incurred since your last loan was disbursed

Once you have gathered all of the required documents, you will need to complete and submit a PPP Loan Application. You can find this application on the Small Business Administration’s website.

Once you have submitted your application, a lender will review it and determine whether or not you are eligible for a second PPP loan. If you are approved, the lender will disburse the loan funds to you within 10 days.

Eligibility for a Second PPP Loan

The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their workers on the payroll during the COVID-19 pandemic. If you’ve already received a PPP loan, you may be eligible to apply for a second one. In this article, we’ll go over the eligibility requirements for a second PPP loan.

Check the list of eligible expenses

Eligible expenses for a second PPP loan include:
-Payroll costs
-Mortgage interest
-Interest on other debt obligations incurred before February 15, 2020
-Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020

To be eligible for a second PPP loan, you must:
-Employ no more than 300 employees.
-Have used or will use the full amount of your first PPP loan for authorized uses.
-Demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Determine the maximum loan amount

To determine the maximum loan amount, multiply 2.5 by your business’s average monthly payroll costs from the 12 months prior to either February 15, 2020 or January 1, 2020. You can choose which time period provides the most accurate payroll number for your business.

If your business is newly formed or was not in operation during 2019, use payroll from 2020. If you’re a seasonal employer, you have the option to use either 2019 or 2020 payroll. Find specific instructions for calculating payroll here.

The maximum loan amount is also capped at 2% of your business’s total 2019 payroll. If your calculation using 2.5 x monthly payroll results in a number higher than this 2% cap, you will receive a loan for 2% of total 2019 payroll. Remember that if you received a PPP loan in 2020, that amount will be deducted from your second loan amount calculation.

For example, let’s say your business had $100,000 in monthly payroll and $1,200,000 in total annual payroll in 2019. Your maximum loan amount would be calculated as follows:
2.5 x $100,000 = $250,000
$250,000 is less than 2% of $1,200,000 so your maximum loan amount would be $250,000

How to Use the PPP Loan

Use the loan for eligible expenses

You can use your PPP loan for eligible expenses, including payroll, mortgage interest, rent, utilities, worker protection costs, and operational expenses.

Eligible expenses are those that:
-Are necessary to continue operating your business
-Were incurred before the covered period began
-Relate to your business’s normal operations

Create a plan to repay the loan

The first step in creating a plan to repay your loan is to assess your current financial situation. This includes reviewing your revenue and expenses, as well as any outstanding loans or other debts you may have. Once you have a clear understanding of your finances, you can begin to develop a plan for repaying your PPP loan.

There are a few different options for repaying your loan, and the best option for you will depend on your individual financial situation. You may be able to repay your loan in full within the two-year period, or you may need to extend the repayment period. You may also be eligible for forgiveness of part of your loan if you use the funds for eligible expenses.

Once you have developed a plan for repayment, you should contact your lender to discuss your options and make sure that you are on track to repay the loan in full.

Similar Posts