Small businesses adversely impacted by the pandemic now have the opportunity to apply for additional PPP funds in the form of a Second Draw PPP Loan. These loans are designed for small businesses, sole proprietors, independent contractors and non-profits who have exhausted their initial PPP loan. The SBA has issued initial guidance surrounding this new round of funding, which can be found here. We encourage interested borrowers to review the SBA’s website as well as the information below to determine eligibility.
We look forward to helping local businesses submit their applications for funding and will keep you informed as we receive additional guidance and updates from the SBA. Should you have any questions please contact us at PPPLoan@firstresourcebank.com.
Click here if you are interested in applying for Second Draw PPP Loan with First Resource Bank
What do I need to know regarding eligibility?
- Returning borrowers must use or have used the full amount of their first PPP Loan
- Only businesses with 300 or fewer employees that have sustained a 25% drop in revenue in any quarter of 2020 when compared to the same quarter in 2019 can apply
- The last day to apply for and receive a PPP Loan is March 31, 2021
What can the funds be used for?
- to help fund payroll costs, including benefits
- to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19
- to pay for uninsured property damage costs caused by looting or vandalism during 2020
- to cover certain supplier costs and expenses for operations
Will Second Draw PPP Loans be forgiven?
Borrowers will qualify for full loan forgiveness as long as during the 8 to 24 week period following disbursement they meet the following terms:
- 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