Overview:
The federal government has made a second round of funds, “Paycheck Protection Program second-draw”, available for small businesses in need of COVID-19 economic hardship relief. To distribute these funds they have partnered with the Small Business Administration (SBA).
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.
The Paycheck Protection Program provides 2-year, 6-month deferment, 1% fixed-rate forgivable loans to help small businesses cover payroll and other operational expenses.
If you did receive a PPP first-draw loan, you may be able to apply for a PPP second-draw loan as well if you meet certain criteria.
Loan details:
In general, first- and second-time PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs (with a cap per employee of $100,000 annualized) in 2019, 2020, or the year prior to the loan. PPP borrowers with NAICS codes starting with 72 (such as hotels and restaurants) can receive up to 3.5 times their average monthly payroll costs on second-draw loans
