The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 passed Congress with strong bipartisan support and was signed into law by President Trump on December 27, 2020.  This relief package provides critical support to the American people and will further strengthen our economic recovery

Previously, President Trump signed the CARES Act into law on March 27, 2020.  The CARES Act was passed with overwhelming bipartisan support and delivered on the Trump Administration’s commitment to supporting the American people through the public health and economic impacts of COVID-19.

Together, these relief bills provide fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for American industries.


The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration with support from the Department of the Treasury.  This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously
received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as
their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs,
including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker
protection costs related to COVID-19, uninsured property damage costs caused by looting or
vandalism during 2020, and certain supplier costs and expenses for operations.
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.
Targeted Eligibility

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
authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters
in 2019 and 2020.

Maximum Loan Amount and
Increased Assistance for Accommodation and Food Services Businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average
monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and
Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a
Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing
SBA 7(a) lender or through any federally insured depository institution, federally insured credit
union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
All Second Draw PPP Loans will have the same terms regardless of lender or borrower. A list
of participating lenders as well as additional information and full terms can be found HERE.
Ensuring Access for All

SBA continues to call upon its lending partners, including Community Development Financial
Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to
assist eligible borrowers in underserved and disadvantaged communities. At least $25 billion is
being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10
employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income
neighborhoods. To promote access for smaller lenders and their customers, SBA will initially
only accept Second Draw PPP Loan applications from community financial institutions starting
on January 13, 2021. The PPP will open to all participating lenders for Second Draw PPP
Loans shortly thereafter