It is no longer possible to apply for a Round 2 (Second Draw) Paycheck Protection Program (PPP) loan. The Small Business Administration (SBA) officially ended the program on May 31, 2021. The program is closed, and no new applications are being accepted.
The second round of PPP loans provides eligibility to new borrowers and certain existing PPP borrowers. As eligibility opens up, small businesses and lenders should prepare to adhere to the new requirements detailed below. Monday, Jan. 11, marks the opening of the portal.
Congress passed, and President Trump signed, the Consolidated Appropriations Act, 2021. Included in its approximately 5,600 pages is a second draw of forgivable Paycheck Protection Program (PPP) loans.
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.
Yes, you can technically have more than one personal loan. Some lenders limit the number of loans they will issue to each borrower. They may also limit the amount. For example, you may be able to borrow a maximum total amount of $20,000 from a particular lender.
In total, Congress set aside an additional $284.5 billion for new and second draw PPP loans in Round 3, which will extend until March 31, 2021, to the extent funding lasts.
The number of loans partially or fully forgiven that received the maximum PPP loan amount of $10 million. The average dollar amount of a forgiven PPP loan.
After the lender issues its PPP loan forgiveness decision to the SBA, the SBA has 90 days to validate or deny the lender's decision and remit the appropriate forgiveness amount, including accrued interest, to the lender.
As of 2025, the SBA has closed new PPP applications, but businesses that received funding in previous rounds can still apply for forgiveness under the latest guidelines. The simplified application process for loans under $150,000 remains in place, reducing paperwork for small businesses seeking forgiveness.
The Small Business Administration (SBA) announced in May 2021 that they have exhausted the funds allocated for the Paycheck Protection Program (PPP) and are no longer accepting applications.
A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan.
The PPP rules currently provide that you may submit a loan forgiveness application at any time after the end of your Covered Period and before the maturity date of your loan, as long as you have an outstanding balance on your loan.
Who will be audited? PPP loans in excess of $2 million are automatically triggered for an audit by the SBA. The SBA has created a safe harbor for any PPP loan borrower that, together with its affiliates, received loans of less than $2 million.
The SBA said it will reopen the Paycheck Protection Program loan portal to PPP-eligible lenders with $1 billion or less in assets at 9 a.m. (Eastern time) tomorrow, Jan. 15. The reopening applies to both first- and second-draw applications. The portal will fully open to all participating PPP lenders on Tuesday, Jan.
PPP Loan Availability
Last Friday the SBA and Treasury announced that the second round of the Paycheck Protection Program (PPP) opens today, January 11, 2021, and on Wednesday, January 13, 2021.
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An eligible entity may receive only one second draw loan. The Act also provided that the time period that is used for calculating a borrower's average payroll costs for a Second Draw PPP Loan is either “the 1-year period before the date on which the loan is made” or “calendar year 2019.”