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  • Writer's pictureSummit Bookkeeping

Second Draw PPP Loan | COVID-19 Relief

The Small Business Administration reopened the PPP loan for previous borrowers on January 13, 2021. If you previously received a PPP loan, you may be eligible for a Second Draw PPP Loan with the same general loan terms as the first one.

This loan can be used for:

  • Payroll costs, including benefits;

  • Mortgage interest;

  • Rent;

  • Utilities;

  • Worker protection costs related to COVID-19;

  • Uninsured property damage costs caused by looting or vandalism during 2020; and

  • Certain suppliers costs and expenses for operations.

Most borrowers will have a maximum loan amount of 2.5 times the average monthly 2019 or 2020 payroll cost up to $2 million. For those in the Accommodation and Food Services, the maximum loan amount is 3.5 times the average monthly 2019 or 2020 payroll cost up to $2 million.


If the following apply, your business may be eligible for a Second Draw PPP Loan:

  • You previously received a PPP loan and will or have used the full amount only for authorized uses;

  • Your business has no more than 300 employees; and

  • You can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Currently, the deadline to apply is March 31, 2021.

How to Apply

You can start your application using the PPP Second Draw Borrow Application Form on the SBA website.

If you need a lender, you can use the SBA's Lender Match tool to connect you with a one. You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit system institution that is participating in PPP. The Second Draw PPP Loan will have the same terms regardless of the lender or borrower.

Have Additional Questions?

The SBA has addressed common questions in this PDF, Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide. If you have additional questions, please contact your lender.


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