Can I get another PPP loan if I got funding in the first round? (IMPORTANT UPDATES FOR 2021)

Important PPP update for 2021

On December 22, 2020, Congress passed a bill renewing funding under the CARES Act, including an additional $284 billion earmarked for America’s struggling small businesses. The rules and application process for PPP loans and forgiveness have been modified, with more businesses eligible for PPP loans, more expenses forgivable, and a simplified application process. Also there is provision for “second draw” PPP loans for businesses that received PPP funding in 2020. Start your PPP loan application now!

The new bill allows for “Second draw” PPP loans for harder-hit businesses that received PPP funding in 2020

If you got a PPP loan in the first round, you can get a “second draw” PPP loan, provided your business does not employ more than 300 employees, has used or will use the full amount of the first PPP, and can demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019.

The new bill provides applicable timelines for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.

Click for more information about second draw PPP loans.

Who is eligible for a second PPP loan?

Eligible entities for these “second draw PPP loans” must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.

At this point the terms of the second draw PPP loans appear to be similar to what has previously been established, but businesses in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive loans of up to 3.5X average monthly payroll costs. No loan can be greater than $2 million.

If you haven’t received PPP loan forgiveness for a 2020 PPP loan, you can reapply/modify/increase your PPP loan amount

Previous PPP loan borrowers who returned all or part of their PPP loan may reapply for the maximum amount applicable under the new terms, so long that they have not yet received forgiveness. Additionally, PPP borrowers whose loan calculations have increased due to changes in interim final rules to work with lenders to modify their loan value regardless of whether the loan has been fully disbursed, or if Form 1502 has already been submitted.

In this 3-minute read:

  • Can I get more than one Paycheck Protection Program loan?
  • Additional emergency funding resources during COVID-19
  • Can I submit more than one PPP loan application?

Many businesses have received their funds for the first round of PPP loans that went out. While some businesses may do just fine with this one source of emergency funding, others are still finding it a struggle to keep up with expenses. 

What are some other options for emergency business funding during the COVID-19 pandemic and can you apply for more than one PPP loan to help your business make it through?

Get your PPP loan or second draw PPP loan through Womply! Womply has helped over 200,000 businesses get their PPP funding. It’s free to apply for a PPP loan, and Womply can help connect you with an SBA lender that’s right for you! Start your PPP application.

Can I get more than one PPP loan for my business?

Per the original PPP loan rules, you could only apply for one PPP loan per business entity that you own. If you have a business with multiple locations and each location has its own Tax ID or EIN, then you could apply for a loan for each entity. 

But for a single business under one EIN, you could only apply for one PPP loan. 

HOWEVER, as noted above, the new rules approved by Congress in December 2020 DO ALLOW you to apply for a second PPP loan, provided you comply with the terms set forth in the bill. Click for more information about second draw PPP loans.

Go deeper in our FAQs: Can you apply for PPP twice?

Eligible businesses for a “second draw” PPP loan

You may only apply for a second PPP loan if your business:

  • Does not employ more than 300 employees
  • Has used or will use the full amount of the first PPP
  • AND can demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019

Additional resources for emergency business funding 

The SBA has always offered emergency funding to small businesses in times of need, and the Paycheck Protection Program is not their only option. 

The SBA has four different COVID-19 relief funding options for small businesses, one of which is the PPP loans. The other three include the following:

  • Emergency Injury Disaster Loan (EIDL) advance of up to $10,000 to help businesses that are experiencing temporary setbacks. The EIDL program includes both an “advance” or “grant” (which is the $10,000 mentioned above) and loans for greater amounts. If you are approved for the loan “advance” then you don’t have to repay that money, or any interest on it, even if your SBA disaster loan is eventually rejected.
  • SBA Express Bridge Loans allows businesses that already have relationships with SBA Express Lenders to quickly access up to $25,000
  • SBA Debt Relief provides financial reprieve to businesses during the pandemic

Can / should I submit another PPP loan application if I haven’t heard anything from my bank?

Millions of small businesses have submitted PPP loan applications, but many have not yet actually received their funds from the program or heard back about whether or not they have been approved. 

If you have not heard anything about the processing of your application and PPP loan, we urge you to first check with your lender before submitting another application.

It is possible to submit another application for a PPP loan with a different lender to potentially receive your funds quicker, however if you have completed and submitted a PPP loan application already, we recommend strongly against completing and submitting a second application.

Some lenders are more responsive than others, so we understand the desire to work through someone else if you haven’t heard anything back about your loan yet. This may be particularly true if your lender is a large national bank that has had a lot of demand where PPP loans are concerned. 

If you decide you are going to submit another application through a different lender, it is extremely important to get confirmation that your initial application is cancelled so you don’t face any legal penalties. 

Let Womply help you apply for your PPP loans!

As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The deadline is March 31, 2021.

Start your PPP application now!

Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

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