I got a PPP Loan During the First Stimulus Bill. Can I Get Another One?

I got a PPP Loan During the First Stimulus Bill. Can I Get Another One?

Cassidy Chansirik
 | 

Small businesses have been especially hit hard by the pandemic. According to the National Academy of Sciences, 43% of small businesses surveyed had to temporarily close and another 39% had to reduce the number of active employees. 

 

To help small business owners get back on their feet, Congress approved $248 billion more for Paycheck Protection Program loans, also known as PPP loans. Here’s what you need to know if your company already received a PPP loan during the first stimulus bill. 

 

If my company already received a PPP loan, am I still eligible for a second one?

Yes! To be eligible for a second PPP loan, you must meet the following criteria:

  • Your company previously received a PPP loan and plan to, or have already, used the full amount 
  • Your company has no more than 300 employees
  • Your company experienced a 25% or more reduction in revenue in 2020 compared to 2019
  • Your company is asking for no more than $2 million 
 

What period of time does the second PPP loan cover?

The second PPP loan covers any period of time between 8 and 24 weeks. If you do not qualify for loan forgiveness, you have up to five years to pay the loan back at a 1% interest rate. 

 

Under this second stimulus bill, what can my second PPP loan be spent on?

The rules for what PPP loans can be spent on have changed since the first stimulus bill. For your second PPP loan, you can spend the money on the following: 

  • Payroll costs
  • Costs related to healthcare, life, disability, dental, or vision benefits
  • Mortgage interest payments
  • Rent payments
  • Utility payments
  • Interest payments on debt incurred before February 15, 2020
  • Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020
  • Operations expenditures
  • Property damage costs
  • Supplier costs
  • Worker protection expenditures

It’s important to know that under these new rules, 60% of the loan must be used for payroll costs. This is different from the first PPP loan, which required that 75% of the loan be used towards payroll. 

 

When can I apply for the second PPP loan?

You can apply for a second PPP loan beginning January 13, 2021 until March 31, 2021. To find lenders near you, the Small Business Administration has created a map that you can use here. 

 

Here is the application form to apply for a second PPP loan, also known as a Second Draw PPP Loan.  

 

If you have more questions about PPP loans and need advice for your small business, LawChamps can connect you with a qualified attorney. 


This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.

 
Cassidy Chansirik

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