When Can You Apply for a Second PPP Loan?
If you’re wondering when you can apply for a second PPP loan , the answer is that it depends on a few factors. Read on to learn more about when you might be eligible for another round of funding.
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The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their workforce employed during the COVID-19 pandemic.
What is the PPP loan?
The PPP loan is a loan that is available to small businesses and self-employed individuals in order to help them stay afloat during the COVID-19 pandemic. The loan is forgiven if the funds are used for eligible expenses, such as payroll, rent, and utilities.
What are the requirements to qualify for a PPP loan?
In order to qualify for a PPP loan, you must:
– Be a business, nonprofit organization, veterans organization, or tribal business concern with 2500 or fewer employees
– Have used or will use the loan proceeds to support business activities in the United States
– Have generated revenue in 2019
– Demonstrate financial need
When Can You Apply for a Second PPP Loan?
If your first PPP loan was used up within the 8-week covered period, you can apply for a second PPP loan for the same amount. If you need more money, you can apply for a second PPP loan for up to 2.5 times your average monthly payroll costs.
If your first PPP loan was less than $150,000
If your first PPP loan was for less than $150,000, you may apply for a second loan beginning on the date that is five months after the date on which you received your first PPP loan.
If your first PPP loan was more than $150,000
If your first PPP loan was more than $150,000, you are not eligible for a second PPP loan.
How to Apply for a Second PPP Loan
If your business has been impacted by the COVID-19 pandemic, you may be eligible to apply for a Second PPP Loan. The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their employees on the payroll during the pandemic. If you’re interested in applying for a Second PPP Loan, here’s what you need to know.
SBA Form 3508S
Small businesses and sole proprietors can apply for a second draw PPP loan if they meet certain criteria. To apply for a second PPP loan, you must complete the SBA Form 3508S.
Your lender will also need to sign the form before you submit it. If you’re applying for a second PPP loan from the same lender you used for your first loan, they may already have a copy of the form on file.
You can find the SBA Form 3508S on the SBA’s website. The form is also available through most major banks and lenders that offer PPP loans.
When completing the SBA Form 3508S, you’ll need to provide information about your business, such as your business name, address, and employer identification number (EIN). You’ll also need to provide information about your first PPP loan, including the loan number and total amount received.
In addition, you’ll need to attest that your business meets certain criteria in order to qualify for a second PPP loan. For example, you must attest that your business has experienced a 25% or greater reduction in gross receipts between comparable quarters in 2019 and 2020.
You’ll also need to provide information about how you plan to use your second PPP loan. Similar to your first loan, at least 60% of the second loan must be used for payroll expenses. The remaining 40% can be used for eligible non-payroll expenses, such as rent, mortgage interest, or utility payments.
Once you’ve completed the SBA Form 3508S, submit it to your lender along with any required supporting documentation. Your lender will then review your application and determine whether you qualify for a second PPP loan.
SBA Form 3508EZ
The SBA has released a new form (3508EZ) that simplifies the application process for businesses that meet certain conditions. Businesses can use this form if they:
-Are eligible for a PPP loan but have not yet received one
-Previously received a PPP loan and will not apply for an Economic Injury Disaster Loan (EIDL)
-Are a business with no employees; OR
-Are a business with employees that did not have a decrease in gross receipts during any quarter in 2020 compared to the same quarter in 2019.
If you do not meet all of the requirements above, you must use the full 3508 form to apply for your second PPP loan.