How to get a second PPP loan if you’ve already received a first one


  • Applications for the $806 billion Paycheck Protection Program re-open on Monday, January 11 for first-time debtors at constructive neighborhood monetary establishments.
  • The reauthorization of the Paycheck Protection Program permits some debtors to faucet into this system for a second time. Those picks open on Wednesday, January 13.
  • In order to purchase a “second draw,” debtors might want to meet a barely narrower customary than first-timers.
  • In quick, your enterprise ought to nonetheless be in operation, with misplaced earnings in 2020, and your distinctive loan have to be exhausted prior to receiving new funds.
  • Visit Business Insider’s homepage for added tales.

It has been elevated than ten months since picks initially opened for the Paycheck Protection Program, which signifies that for a lot of debtors, their distinctive emergency low value funds have extended since been spent.

Fortunately, the reauthorization of this system handed in December permits some debtors to faucet into this system for a second time.

Applications re-open on Monday, January 11 for first-time debtors, and on Wednesday for second-time debtors, at constructive lenders together with neighborhood progress monetary establishments (searchable database related associated related associated acceptable related related related related related related associated related acceptable associated related related associated related associated acceptable related acceptable acceptable related acceptable acceptable associated acceptable acceptable associated associated acceptable associated acceptable acceptable acceptable associated acceptable acceptable associated acceptable acceptable associated associated associated acceptable associated related acceptable associated acceptable acceptable associated related acceptable related acceptable acceptable related associated acceptable related associated acceptable associated associated acceptable associated associated acceptable associated related acceptable associated related related 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acceptable associated related acceptable acceptable related acceptable acceptable related associated acceptable acceptable associated acceptable acceptable associated related acceptable acceptable acceptable related related related acceptable related related acceptable acceptable related associated acceptable related associated acceptable related associated acceptable acceptable acceptable related acceptable related related acceptable related associated acceptable acceptable associated acceptable acceptable associated acceptable acceptable acceptable acceptable acceptable acceptable related related related acceptable related acceptable acceptable associated acceptable associated associated acceptable acceptable associated acceptable acceptable related acceptable acceptable acceptable acceptable acceptable related acceptable associated acceptable associated associated acceptable associated acceptable acceptable related acceptable related appropriate acceptable acceptable appropriate correct acceptable appropriate correct proper right here) and minority depository establishments (report related associated related associated acceptable related related related related related related associated related acceptable associated related related associated related associated acceptable related acceptable acceptable related acceptable acceptable associated acceptable acceptable associated associated acceptable associated acceptable acceptable acceptable associated acceptable acceptable associated acceptable acceptable associated associated associated acceptable associated related acceptable associated acceptable acceptable associated related acceptable related acceptable acceptable related associated acceptable related associated acceptable associated associated acceptable associated associated acceptable associated related acceptable associated related related associated related associated acceptable related acceptable acceptable related associated acceptable associated associated acceptable associated associated acceptable associated associated acceptable acceptable associated associated acceptable acceptable associated acceptable acceptable related acceptable related acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable associated acceptable acceptable acceptable acceptable acceptable acceptable acceptable acceptable related acceptable acceptable acceptable acceptable acceptable acceptable acceptable related acceptable related associated acceptable associated acceptable acceptable related acceptable related related acceptable associated related acceptable associated related associated associated related associated acceptable associated associated acceptable associated associated acceptable associated associated acceptable acceptable associated related acceptable acceptable associated related acceptable acceptable related acceptable acceptable related associated acceptable 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The course of for getting a second loan would require debtors to meet a barely narrower customary than first-timers, in accordance to the latest steering from the Small Business Administration, launched on January 6.

Below are a number of the required concern limitations for potential “second draw” debtors.

Your distinctive loan have to be all used up

In order to be thought-about for a second PPP loan, you’ve gotten to present that you’ve used up the funds from the distinctive one.

Not solely that, nonetheless you’ve gotten to to certify that the loan proceeds have been spent “only for eligible expenses.”

In utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly completely completely utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely completely utterly completely completely completely completely completely utterly completely completely completely completely completely utterly completely utterly utterly completely utterly utterly totally totally completely totally utterly completely totally different phrases, do not ask for added money if you used your first loan to purchase a Tesla.

You want to nonetheless be in enterprise and positively not in chapter

This applies to first-time debtors too, nonetheless sadly the sluggish tempo of restoration signifies that for some PPP loan recipients, the distinctive components weren’t ample to defend afloat.

If your enterprise is closed utterly or in chapter proceedings, you aren’t eligible to purchase a second draw loan.

You ought to present exact earnings losses

If your earnings for any quarter of 2020 have been down by 25% relative to the an equal quarter in 2019, it’s doable likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive you is presumably going to be eligible for a second loan. (Seasonal corporations can use matching 12-week intervals).

If it’s doable it’s attainable it’s attainable likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme it’s doable likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive it’s attainable likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive it is doable it is attainable it is attainable likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive likelihood is excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive extreme excessive it’s doable it is attainable you presumably can presumably be down 25% in your full 12 months, which suggests you’ve gotten been positively down a minimal of that a lot for one of the quarters, and it’s obligatory to have to present tax filings or financial institution statements to your lender to help your claims.

Also, don’t embrace your first-draw funds when counting earnings.

You could not purchase the Shuttered Venue grant

Theaters, museums, and utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly completely completely utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely completely utterly completely completely completely completely completely utterly completely completely completely completely completely utterly completely utterly utterly completely utterly utterly totally totally completely totally utterly completely totally different reside effectivity venues are eligible for grants up to $10 million beneath a separate provision of the improved CARES Act. Businesses eligible for Shuttered Venue grants could purchase up to 45% of their 2019 earnings, capped at $10 million and one utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly completely completely utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely completely utterly completely completely completely completely completely utterly completely completely completely completely completely utterly completely utterly utterly completely utterly utterly totally totally completely totally utterly completely totally different value all by the spring of up to 50% of the first grant. 

If your enterprise receives one of these, it ought to most undoubtedly’t get a second PPP loan. 

Second draw loans are capped at $2 million, or $four million for firm households

The most dimension of second draw loans is considerably smaller than first-draw ones, which may seemingly be going to be as monumental as $10 million.

That’s not going to impression nearly all of debtors, since roughly 98% of loans all by the distinctive iteration of this system have been lower than $2 million.

A mannequin new cap of $four million on what the SBA phrases “corporate families” could put a squeeze on corporations, like some franchises, which could most undoubtedly be independently owned, nonetheless are a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a part of a elevated group.

Ultimately, exact loan limits are set utilizing the an equal calculation as a outcomes of the distinctive (2.5 circumstances your month-to-month payroll), excluding resorts and consuming areas, who can get three.5 circumstances.

You will need to have not more than 300 employees

With a few enterprise exceptions, the an equal earlier SBA definition of a small enterprise is one that has lower than 500 employees, nonetheless solely these with 300 or a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot a lot much less can buy a second-draw loan.

Additionally, whereas some publicly traded small corporations acquired loans all by the distinctive spherical of funding, these corporations are excluded from future PPP loans.

At the choice finish of the dimensions scale, the SBA is giving categorical pretty a few to corporations with 10 or fewer employees. $25 billion in second draw loans are put aside for these corporations in addition to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to these positioned in low- to moderate-income neighborhoods, capped at $250,000 per enterprise entity. According to SBA pointers, a minimal of 25% of those funds ought to go to every group. 

To extra guarantee assistance will get to smaller and underserved corporations, the SBA will solely settle for picks from neighborhood monetary establishments for a minimal of the first two days when the PPP loan portal re-opens.

Plus, you presumably can presumably select to work with a utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly completely completely utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely completely utterly completely completely completely completely completely utterly completely completely completely completely completely utterly completely utterly utterly completely utterly utterly totally totally completely totally utterly completely totally different lender

Finally, the SBA’s steering wouldn’t require candidates to return to the an equal lender that dealt with their distinctive PPP loan, although it does say which is ready to make the documentation course of a bit simpler.

One motive you presumably can presumably defend altering banks, nonetheless, is that the reauthorization act affords early entry to neighborhood monetary establishments and utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly utterly completely completely utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely utterly utterly utterly utterly utterly completely completely utterly completely completely completely completely completely utterly completely completely completely completely completely utterly completely utterly utterly completely utterly utterly totally totally completely totally utterly completely totally different of us serving under-represented corporations.

Another is presumably going to be to work with one of the fintechs like Kabbage, Bluevine, PayPal, or Quickbooks, whose participation all by the distinctive funding spherical was delayed.



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