The SBA and the Treasury have released the new application for a second draw from the Payroll Protection Program (PPP). Form 2483-SD – PPP Second Draw Borrower Application Form is for applicants who received the first round and wish to apply for a second loan.
To be eligible for a second round of the PPP loan, the borrower must meet the following requirements:
- employee not more than 300 employees
- has used or will use the entire amount of the first PPP for authorized uses on or before the expected date of the disbursement of the second round,
- demonstrate at least 25% reduction in gross receipts in any quarter in 2020 as compared to the same quarter in 2019
- Your business was in operation before February 15, 2020.
- Your business is still open and operational.
As with the first round of PPP, the terms to achieve full forgiveness of the loan must meet the following: during the 8- to 24-week covered period following the loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs.
The new stimulus bill expanded the qualified payroll costs to include employer-provided group life, disability, vision and dental insurance.
The bill also expanded the non-payroll expenses to include:
- Covered expenditures for operations. Payment for any software, cloud computing, and other human resources and accounting needs.
- Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
- Covered supplier costs. Payments to a supplier pursuant to a contract, purchase order, or order for goods that was in effect prior to taking out the loan and was essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
- Covered worker protection expenditure. Investments in personal protective equipment and other adaptive costs to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.
For businesses that did not receive/apply for the first round of the PPP loans, the SBA has reopened the application process. These applicants would use Form 2483 – Paycheck Protection Program Borrower Application Form.
Please note, businesses do not apply for these funds directly through the SBA. Businesses are to apply through a qualified financial institution.
For additional information, see these notices released by the SBA and the Treasury:
- Top-Line Overview of First Draw PPP Loans
- Top-Line Overview of Second Draw PPP Loans
- Payroll Protection Program Loans – FAQs
- How to Calculate Loan Amounts
- Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only)
- Procedural Notice – SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement