Paycheck Protection Program Loans - Second Draw Program (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 your first PPP loan has run dry.

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 Draw PPP loan can benefit your business.

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Easy-to-use digital application

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Forgivable loan

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Customer support available throughout the process

PPP second draw 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
    is determined
  • 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 Draw 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 a Second Draw 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 Draw PPP loan?

Second Draw PPP loans can be used for the same expenses as your first PPP loan, with some additions. These expenses include:

  • Employee payroll, salary and wages
  • Utilities
  • Rent
  • 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?

You can view the latest application information and a Second Draw PPP FAQ

 

The PPP loan is administered by Pursuit BDC

Find the right loan for your business today

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