SBA Releases Details of Second-Draw PPP Loans
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (The Economic Aid Act) was signed into law by President Trump on December 27, 2020. This legislation includes a provision for a second round of Paycheck Protection Program (PPP) lending of forgivable loans to small businesses struggling due to the pandemic.
Today, the Small Business Administration (SBA), released a detailed ruling on the eligibility requirements, stipulations, and forgiveness processes for these second-draw PPP loans. The terms and conditions for second PPP loans are very similar to the first round, with some notable changes to eligibility.
Generally, businesses with less than 300 employees who have experienced a loss of 25% or greater total revenue in any quarter since the pandemic began will be eligible for a second PPP loan. This round of PPP lending is intended to be narrower in scope and targeted to minority and smaller businesses who have been especially hard-hit by the pandemic.
To read the first SBA ruling, which aggregates the terms and conditions of the first PPP as they apply to the second round of PPP, click here.
To read the second SBA ruling, which details the eligibility requirements, application process, and forgiveness process for the second PPP, click here.