To be eligible for a Second Draw PPP Loan (which ran in 2021), businesses needed to have received a First Draw PPP Loan, used all those funds, had 300 or fewer employees, and demonstrated at least a 25% reduction in gross receipts in 2020 compared to 2019, with specific rules for industries like hospitality (NAICS 72). Eligibility required using the first loan for authorized expenses and showing a significant revenue drop to help businesses impacted by the pandemic, with the program closing in May 2021.
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. Second Draw PPP Loans can be used to help fund payroll costs, including benefits.
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.”
No, the Paycheck Protection Program (PPP) is not coming back for new loans; the program officially ended in May 2021, with the last funds disbursed, but existing borrowers can still apply for loan forgiveness, a process the SBA continues to support for those who meet eligibility criteria, U.S. Small Business Administration (SBA). While new funding is not available, the SBA website provides resources for managing forgiveness, which requires specific use of funds for payroll and other eligible expenses, Small Business Administration (SBA).
Yes, you can have 2 SBA loans at the same time! The Small Business Administration (SBA) doesn't limit you to a single loan. However, qualifying for a second loan depends on a few factors, such as your ability to manage the existing debt and meet the requirements for the new loan.
Requirements for a Second Mortgage
The Targeted EIDL Advance provided funds of up to $10,000 to applicants who were in a low-income community, could demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later, and had 300 or fewer employees.
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.
Yes, PPP loans under $150,000 can still be audited by the SBA, though they benefit from a "safe harbor" for good faith necessity certification, meaning they aren't automatically audited like loans over $2 million. The SBA reserves the right to review any loan, and while documentation retention is shorter (3-4 years for smaller loans vs. 6 years for larger ones), borrowers must still keep records in case of a specific review for fraud or misuse.
As long as you meet the lender's income, credit score and debt-to-income (DTI) ratio requirements, you may be able to take out multiple personal loans from different lenders. However, you may not be able to borrow a second loan from the same lender while you are still paying off the first.
To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.
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.
No, the Paycheck Protection Program (PPP) is not coming back for new loans; the program officially ended in May 2021, with the last funds disbursed, but existing borrowers can still apply for loan forgiveness, a process the SBA continues to support for those who meet eligibility criteria, U.S. Small Business Administration (SBA). While new funding is not available, the SBA website provides resources for managing forgiveness, which requires specific use of funds for payroll and other eligible expenses, Small Business Administration (SBA).
These include term loans, SBA loans, lines of credit, merchant cash advances, invoice factoring and invoice financing as well as personal loans and business credit cards. As always, compare your options to make sure you're getting the best deal.
The 2025 Emergency Wildfire Help Loan Program (the Program), administered by the California Health Facilities Financing Authority (CHFFA) within the State Treasurer's Office, offers 0% interest loans to assist eligible non-profit health facilities in the state of California that have been impacted by the 2025 wildfires ...
Businesses are eligible for a second PPP loan of up to $2 million if they have 300 or fewer employees, have used the full amount of their first PPP loan, and can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
Minimum maturity of 5 years for PPP loans. Under the current SBA rule, PPP loan recipients must repay the unforgiven portion of their loan within two years. The Flex Act would allow PPP loan recipients to repay the unforgiven portion of their loan over a term of up to five years.
Early-stage startup funding options
If you need money now but can't get a loan, explore options like paycheck advances, borrowing from friends/family, selling items, 401(k) loans, or credit union emergency loans, while seeking grants through charities like Turn2Us or local council schemes (like calling 211 in the US) for non-loan relief, as payday loans carry extremely high rates and should be a last resort.