PPP FAQs

  • What is a First Draw PPP loan? Who is eligible?

    First Draw PPP Loans are available to borrowers who have not previously received a PPP loan. Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible. Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply. Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.

  • What is a Second Draw PPP loan? Who is eligible?

    Certain existing PPP borrowers are eligible to apply for a Second Draw PPP loan. A borrower is generally eligible for a Second Draw PPP Loan if the borrower: (1) Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; (2) Has no more than 300 employees; and (3) Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

  • What are the forgiveness terms for a First Draw PPP loan?

    First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: (1) Employee and compensation levels are maintained; (2) The loan proceeds are spent on payroll costs and other eligible expenses; and (3) At least 60 percent of the proceeds are spent on payroll costs. Please note that the Economic Aid Act added additional eligible expenses for forgiveness, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.

  • What are the forgiveness terms for a Second Draw PPP loan?

    Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: (1) Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan; (2) The loan proceeds are spent on payroll costs and other eligible expenses; and (3) At least 60 percent of the proceeds are spent on payroll costs. Please note that the Economic Aid Act added additional eligible expenses for forgiveness, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.

  • What are the requirements for Covered Period in the next round of PPP?

    PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs.

  • What is the maximum loan amount for PPP Second Draw loans?

    For most borrowers, the maximum PPP Second Draw loan amount is 2.5x the average monthly 2019 or 2020 payroll costs up to $2M. For borrowers in the Accommodation and Food Services (NAICS 72), the maximum loan amount is 3.5x average monthly 2019 or 2020 payroll costs up to $2M.