NCPE Morning Update – more details about the Second Draw PPP Loans. This information may also be found directly on the SBA.GOV website.
Monday Morning Briefing
Paycheck Protection Program Reopens Week of January 11th First Draw PPP Loans available on Monday, January 11. Second Draw PPP Loans available on Wednesday, January 13. Originally open only to community financial institutions, the PPP will then open to all participating lenders shortly thereafter. Certain existing PPP borrowers may apply for a Second Draw PPP Loan.
- PPP borrowers can set the covered period to be any length of time between 8 and 24 weeks to best meet their business needs.
- Additional expenses can be included such as operational expenses, property damage costs, supplier costs, and other worker protection expenses.
- IRC 501(c)(6) housing cooperatives, direct marketing organizations may also apply.
- Greater flexibility for “seasonal employees”.
- Existing PPP borrowers can apply to amend their First Draw amounts.
- Certain existing PPP borrowers can apply for a Second Draw.
These borrowers are:
- Previously received PPP loan and has or will use the full amount for authorized use,
- Has no more than 300 employees, and
- Can demonstrate at least 25% revenue decline (reduction in gross receipts) between comparable quarters in 2019 and 2020.