Second Paycheck Protection Program Loans ("Second Draw PPP")
A COVID-19 disaster relief program designed to give existing PPP borrowers additional funds
Many businesses have continued to be negatively impacted by COVID-19. You need additional money to keep things afloat and pay your employees, but you need more funds. A second Paycheck Protection Program (PPP) loan can help.
At Pursuit, both existing PPP borrowers and new clients alike can access a second PPP loan. You’ll benefit from a lender that helped more than 7,000 businesses access the first round of PPP and supportive staff members that will support you through your second application. You’ll also continue to receive information that will streamline the loan forgiveness process.
The Second Draw Paycheck Protection Program is an SBA loan program launched to help small businesses stay afloat during ongoing COVID-19 related restrictions and closures. Like your first PPP loan, your second PPP loan can also be forgiven. Learn more about how a second PPP loan can benefit your business.
Easy-to-use digital application
Customer support available throughout the process
What is a Second PPP loan?
PPP is a program designed to provide small businesses struggling with the impact of COVID-19 with access to loans up to $2 million. PPP loans are forgivable, meaning if they are spent according to SBA PPP forgiveness guidelines, the loan converts into a grant. Second PPP loans are for businesses that obtained a first PPP loan in 2020.
Second PPP loan details
- Loan amount: Up to 2.5x your business’s average monthly payroll costs up to $2 million. Accommodation and food services businesses (NAICS codes starting with 72) can borrow up to 3.5x.
- Interest rate: 1%, fixed
- Term: 5-years; payments are not made until loan forgiveness
- Fees: No fees
- Loan forgiveness: If you comply with forgiveness rules, all or some of your loan can be forgiven
- Collateral: Not required
Will I qualify for a second PPP loan?
Second PPP loans are designed to help small businesses that continue to struggle with the impact of COVID-19. Here’s what to know about requirements for your second PPP loan:
- You received a first PPP loan
- You must have used the full amount of your first PPP loan for authorized uses by the expected date of disbursement of your second draw PPP loan. You do not need to have your first PPP loan forgiven to qualify.
- You must have 300 or fewer employees. If you are an employer in accommodation or food services (NAICS code starting with 72), you may have 300 employees at each of your business’s physical locations.
- Your business must be able to demonstrate a revenue reduction of 25% or greater in 2020 relative to 2019. This is calculated by comparing your quarterly gross receipts for one quarter in 2020 with your gross receipts for the corresponding quarter of 2019.
- Your business cannot be permanently closed. If your business has temporarily closed or suspended, you are eligible.
- Eligible business types include for-profit businesses, certain non-profits, independent contractors, sole proprietors, tribal businesses, and small agricultural coops.
How can I use my second PPP loan?
Your second PPP loan can be used for the same expenses as your first PPP loan, with some additions. These expenses include:
- Employee payroll, salary and wages
- Interest on loans and mortgages
Payment for any cloud computing, software and other accounting and HR needs.
Property damage costs that are not covered by insurance and that are due to public disturbances that occurred during 2020
Supplier payments pursuant to a purchase order, contract or order for goods that were in effect prior to receiving the PPP loan that are essential to your operations when the payments were made. Supplier costs for perishable goods can be made before or during the life of the loan.
Any costs that you incurred to help your business comply with Federal, State, or local requirements beginning on March 1, 2020.
Personal Protective Equipment (PPE) purchases
How can I apply for PPP through Pursuit?
View the most recent PPP application information and helpful application resources on our PPP Application Information Hub.
You can also view frequently asked questions about second PPP loans.
The PPP loan is administered by Pursuit BDC