Full Forgiveness Terms
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:
• Employee and compensation levels are maintained in the same manner as required for the
First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.
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
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross revenue between comparable quarters
in 2019 and 2020. You'll compare your gross revenue for one quarter in 2020 with your gross revenue for the same corresponding quarter in 2019.
2nd Draw Loan Terms
The PPP 2nd Draw Loans will have terms and conditions similar to the PPP 1st Draw Loans. These include, but are not limited to:
• 100% SBA Guarantee (no collateral or personal guarantees are required);
• 1% Interest Rate with a 5 Year Maturity; and
• Borrower Certifications can be used for eligibility requirements and use of proceeds.
Maximum Loan Amount and
Increased Assistance for Accommodation and Food Services Businesses
Borrowers with a NAICS code beginning with 72 (includes Hotels and Restaurants) can qualify for a larger loan amount, up to 3.5x your average monthly payroll, compared to 2.5x for all other borrowers. Click HERE to confirm for NAICS 72.
How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021.