Second Draw Loans

You are eligible to receive a Second Draw PPP Loan, if:

• You received a previous PPP loan
• You must have used the full amount of your PPP loan for authorized uses by the disbursement date of your second draw PPP loan. Note: your loan does not need to be forgiven to qualify
• You must have 300 or fewer employees
• Your business must have experienced a revenue reduction of 25% or greater in any quarter of 2020 relative to 2019

• The maximum loan amount for a Second Draw PPP Loan is $29,166. In general, the maximum loan amount for a Second Draw PPP Loan is equal to the lesser of two and half months of the borrower’s average monthly payroll costs or $2 million, except as otherwise specified below. A borrower’s average monthly payroll costs may be based on calendar year 2020, calendar year 2019, or as otherwise specified. ‘‘Payroll costs’’ has the same meaning as in the First Draw PPP rules and is calculated in the same manner. In calculating a borrower’s payroll costs, the borrower must subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the time period during which the payments are made or the obligation to make the payments is incurred. 
• Except as otherwise provided, the maximum amount of a Second Draw PPP Loan is calculated as the lesser of:
  • The product obtained by multiplying: 
    • The average total monthly payment for payroll costs incurred or paid by the borrower during 2019 or 2020 (at the election of the borrower) by 2.5;
      • or $2,000,000.
• The maximum amount of a Second Draw PPP Loan made to a borrower assigned a NAICS code beginning with 72 at the time of disbursement (that is not a seasonal employer, a new entity, a borrower with self-employment income, or a partnership) is calculated as the lesser of: 
  • The product obtained by multiplying: 
    • The average total monthly payment for payroll costs incurred or paid by the borrower during either 2019 or 2020 (at the borrower’s election) by 3.5;
      • or $2,000,000.

The applicant must submit to the lender SBA Form 2483–SD (Paycheck Protection Program Second Draw Borrower Application Form) or the lender’s equivalent form including the required certifications and the documentation.

At the time an applicant submits its loan application form, it must submit the following unless the documentation was submitted to the lender for the First Draw PPP Loan (i.e., the applicant used calendar year 2019 figures to determine both its First Draw PPP Loan amount and its Second Draw PPP Loan amount, and the lender for the applicant’s Second Draw PPP Loan is the same as the lender that made the applicant’s First Draw PPP Loan):

• If the applicant is not self employed, the applicant’s Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate payroll), as applicable, or equivalent payroll processor records, along with evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, must be provided. A partnership must also include its IRS Form 1065 K–1s.
• If the applicant is self-employed and has employees, the applicant’s 2019 or 2020 (whichever was used to calculate loan amount) IRS Form 1040 Schedule C, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate loan amount), as applicable, or equivalent payroll processor records, along with evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, if applicable, must be provided. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the applicant was in operation on February 15, 2020.
• If the applicant is self-employed and does not have employees, the applicant must provide (a) its 2019 or 2020 (whichever was used to calculate loan amount) Form 1040 Schedule C, (b) a 2019 or 2020 (whichever was used to calculate loan amount) IRS Form 1099– MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes that the applicant is self employed; and (c) a 2020 invoice, bank statement, or book of record to establish that the applicant was in operation on or around February 15, 2020.
• For loans with a principal amount greater than $150,000, documentation sufficient to establish that the applicant experienced a reduction in revenue must be provided at the time of application, which may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, a copy of the applicant’s quarterly income statements or bank statements.
• For loans with a principal amount of $150,000 or less, the applicant must submit documentation sufficient to establish that the applicant experienced a reduction in revenue as provided in subsection (c)(1)(i) of this section at the time of application, on or before the date the borrower submits an application for loan forgiveness, or, if the borrower does not apply for loan forgiveness, at SBA’s request. Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, a copy of the applicant’s quarterly income statements or bank statements.

On the Second Draw PPP Loan borrower application, an authorized representative of the applicant must make the certifications listed in the Consolidated First Draw PPP requirements, except:

• The applicant must certify that the applicant has not and will not receive another Second Draw Paycheck Protection Program Loan; and 
• an authorized representative of the applicant must also certify:
  • The Applicant has realized a reduction in gross receipts in excess of 25% relative to the relevant comparison time period. For loans greater than $150,000, Applicant has provided documentation to the lender substantiating the decline in gross receipts. For loans of $150,000 or less, Applicant will provide documentation substantiating the decline in gross receipts upon or before seeking loan forgiveness for the Second Draw Paycheck Protection Program Loan or upon SBA request.
  • The Applicant received a First Draw Paycheck Protection Program Loan and, before the Second Draw Paycheck Protection Program Loan is disbursed, will have used the full loan amount (including any increase) of the First Draw Paycheck Protection Program Loan only for eligible expenses.
  • The Applicant is not a business concern or entity 
    • for which an entity created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or
    • that retains, as a member of the board of directors of the business concern, a person who is a resident of the People’s Republic of China. 
• The Applicant is not required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612). 
• The Applicant is not a business concern or entity primarily engaged in political or lobbying activities, including any entity that is organized for research or for engaging in advocacy in areas such as public policy or pol

No. You can apply for a Second Draw PPP loan from any PPP lender.

For all Second Draw loan applications you will need to provide your PPP First Draw SBA loan number. This is a unique 10 digit loan number assigned to your First Draw PPP loan by the lender who facilitated your First Draw loan.

Note: this is not the same thing as your SBA Customer Number, but is a loan number associated with your First Draw PPP Loan. Contact your First Draw lender to receive your PPP First Draw SBA Loan Number.

Your PPP First Draw SBA Loan Number is the number assigned to your approved first draw PPP loan by the SBA.

According to the SBA, PPP First Draw Loan Numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers). Womply has also seen lenders providing the PPP First Draw Loan Number as 10-digits (without a dash).

Your first draw lender likely provided this to you in your loan documentation when your loan was approved or funded. If you applied through Womply for your First Draw loan then Womply Support can help you lookup this number. It’s very important that when you apply for your Second Draw loan you ensure the EIN on your application matches the one used on the First Draw loan for which the PPP First Draw SBA Loan Number relates.

There is no central database to lookup your PPP First Draw SBA Loan Number (eg from the SBA). Your SBA Customer Number is not the same thing as your PPP First Draw SBA Loan Number (so don’t use that in place of the correct number in your application).

We have instructions on how to find your PPP First Draw SBA Loan Number at some of the major lenders in the content below. If your First Draw loan lender is not listed below, you will likely need to reach out to them directly and ask them to provide you with your PPP First Draw SBA Loan Number.

As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020).

According to the SBA, PPP First Draw Loan Numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers).  Womply has also seen lenders providing the PPP First Draw Loan Number as 10-digits (without a dash).
The SBA has asked all PPP lenders to make SBA loan numbers easily accessible to their borrowers.

No, you don’t need to have applied for forgiveness or received forgiveness in order to receive a Second Draw loan. However, to receive a Second Draw loan you must certify that you spent your full first draw loan on eligible expenses. In other words, the government wants to know that you spent your first draw loan responsibly and should be eligible to receive forgiveness on that loan in the future. And they want you to attest to that fact before you get more government money.

To receive maximum loan forgiveness, borrowers must spend at least 60% of their Second Draw PPP loan on eligible payroll costs, and no more than 40% on eligible non-payroll costs. For purposes of loan forgiveness, the borrower will have to document the proceeds used for payroll costs in order to determine the amount of forgiveness.

Other permissible costs (other eligible non-payroll costs) include:

• Covered operations expenditures: “Payments for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses”
• Covered property damage costs: Costs related to “property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation”
• Covered supplier costs: Payments made to suppliers of goods pursuant to contracts, orders, or purchase orders in effect before the covered period (or, for perishable goods, in effect before or during the covered period), for the supply of goods that “are essential to the operations of the borrower at the time at which the expenditure is made”
• Covered worker protection expenditures: Expenditures made to help the business comply with federal, state, or local requirements or guidelines related to worker and customer safety amid COVID-19, such as the purchase of PPE or facility modifications such as ventilation and filtration systems, physical barriers, and screening capabilities; see Page 50 of the IFR for additional details and examples
• Certain employer-provided group insurance payments: “Costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums”

No. You need the PPP First Draw SBA Loan Number from your First Draw loan in order to apply for a Second Draw loan. However, as soon as your First Draw loan is issued and you have that number, you can immediately apply for a Second Draw loan as long as you meet the eligibility requirements and you can certify that you will have used all of your First Draw loan funds prior to the dispersal date of your Second Draw loan.

(1) If a First Draw PPP Loan is under review pursuant to PPP rules and/or information in SBA’s possession indicates that the borrower may have been ineligible for the First Draw PPP Loan it received or for the loan amount received by the borrower, the lender will receive notification from SBA when the lender submits an application for guaranty of a Second Draw PPP Loan (‘‘unresolved borrower’’).

(2) If the lender receives notification that the Applicant for a Second Draw PPP Loan is an unresolved borrower, the lender will not receive an SBA loan number. SBA will resolve the issue related to the unresolved borrower expeditiously and will notify the lender of the process to obtain an SBA loan number for the Second Draw PPP Loan, if appropriate.

The Paycheck Protection Program re-opened on January 11, 2021 and at least $15 billion is being set aside for First Draw loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods.

In some instances the Second Draw loan process may take longer for the SBA to review and approve applications. As a result, some lenders and businesses are getting the following automated message from the SBA:

“You have attempted to submit a PPP 2nd Draw request. Your original First Draw PPP Loan is still under review by the SBA and has associated holds that must be cleared before 2nd draw processing can proceed. We apologize for this inconvenience. To address your specific loan situation, please use the Forgiveness platform Inbox to request escalation of your loan review by the SBA. Error: E0117”

Don’t be alarmed if you get this message. It simply means that the processing and final approval of your loan may take a little longer.

Second Draw PPP Loans are subject to SBA’s and the Department of the Treasury’s (‘‘Treasury’s’’) consolidated interim final rule implementing the Paycheck Protection Program (‘‘Consolidated First Draw PPP IFR’’) and all PPP loan program requirements, except as otherwise provided in this section, including but not limited to the following terms:

• The guarantee percentage is 100 percent.
• No collateral will be required. 
• No personal guarantees will be required.
• The interest rate will be 100 basis points or one percent, calculated on a non-compounding, non-adjustable basis. 
• The maturity is five years.
• All loans will be processed by all lenders under delegated authority and lenders will be permitted to rely on certifications of the borrower in order to determine eligibility of the borrower and the use of loan proceeds.

If an entry for this line is missing from your tax return, you should report the industry code that is most applicable to your business’ primary business activity. If your business is in the Accommodation and Food Services sector (e.g., a hotel, restaurant, bar), you can only report a NAICS Code beginning with 72 if you can substantiate this with alternative documentation, such as permits or licenses issued by local governments that are unique to this sector. 

Under the current rules as of 1/15/2021, you cannot receive a Second Draw loan unless you certify that you spent your First Draw loan on qualified expenses. The government wants to ensure you did not spend your First Draw loan on non-qualified expenses and they also don’t want you holding onto your First Draw loan and getting a concurrent Second Draw loan. We expect to see rule changes in this area soon.

An applicant is not eligible for a Second Draw PPP Loan, even if it meets the eligibility requirements if the applicant is:

• Excluded from eligibility under the Consolidated First Draw PPP IFR;
• a business concern or entity primarily engaged in political activities or lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602), including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents;
• any business concern or entity:
  • For which an entity created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or 
  • that retains, as a member of the board of directors of the business concern, a person who is a resident of the People’s Republic of China;
• any person required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612);
• any person or entity that receives a grant for shuttered venue operators under section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act;
• any entity in which the President, the Vice President, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in the entity, where:
  • ‘‘controlling interest’’ means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity;
  • ‘‘equity interest’’ means:
    • A share in an entity, without regard to whether the share is transferable or classified as stock or anything similar;
    • a capital or profit interest in a limited liability company or partnership; or 
    • a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest; 
  • ‘‘Executive department’’ has the meaning given the term in section 101 of title 5, United States Code;
  • ‘‘Member of Congress’’ means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico; and 
  • For the purpose of determining whether a person has a controlling interest in the entity, the securities owned, controlled, or held by the President, the Vice President, the head of an Executive department, or a Member of Congress, shall be aggregated with the securities held by his or her spouse as determined under applicable common law;
• any issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f), where the terms ‘‘exchange,’’ ‘‘issuer,’’ and ‘‘security’’ have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) (except SBA will not consider whether a news organization that is eligible under subsection (c)(4) is affiliated with an entity, which includes any entity that owns or controls such news organization, that is an issuer); 
• an entity that has previously received a Second Draw PPP Loan; or
• an entity that has permanently closed.

Second Draw PPP Loans are eligible for loan forgiveness on the same terms and conditions as First Draw PPP Loans, except that Second Draw PPP Loan borrowers with a principal amount of $150,000 or less are required to provide documentation of revenue reduction if such documentation was not provided at the time of the loan application as specified in subsections (g)(2)(iv) and (v) of this section. 

Eligibility for Second Draw PPP Loans is governed by the same affiliations rules (and waivers) as First Draw PPP Loans.

The affiliation rules under 13 CFR 121.301(f) are waived with respect to eligibility for a Second Draw PPP Loan for:

• Any business concern with not more than 300 employees that, as of the date on which the covered loan is disbursed, is assigned a NAICS code beginning with 72; and
• any business concern (including any station which broadcasts pursuant to a license granted by the Federal Communications Commission under title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.) without regard for whether such a station is a concern as defined in 13 CFR 121.105, or any successor thereto) that employs not more than 300 employees, per physical location of such business concern and is majority owned or controlled by a business concern that is assigned a NAICS code beginning with 511110 or 5151; or 
• any nonprofit organization that is assigned a NAICS code beginning with 5151.

The borrower may certify, for purposes of the Second Draw PPP Loan application, that it will have used all of its First Draw PPP Loan proceeds “only for eligible expenses” if the borrower has used or will use the First Draw PPP Loan proceeds for any or all of the eligible expenses outlined in subsection B.11.a.i.-xi of the consolidated interim final rule implementing updates to the PPP. Borrowers should be mindful that failure to use PPP loan proceeds for the required percentage of payroll costs will affect loan forgiveness.

If a borrower received partial forgiveness of its First Draw PPP Loan, the borrower is eligible for a Second Draw PPP Loan as long as the borrower used the full amount of its First Draw PPP Loan only for eligible expenses outlined in subsection B.11.a.i.-xi of the consolidated interim final rule implementing updates to the PPP.

No. Applicants may not use SBA’s established size standards (either revenue-based or employee-based) or the alternative size standard to qualify for a Second Draw PPP Loan. In general, the size eligibility requirement for Second Draw PPP Loans are narrower than the size eligibility requirement for First Draw PPP Loans. With some exceptions, an applicant is eligible for a Second Draw PPP Loan only if it, together with its affiliates (if applicable), employs no more than 300 employees. The only exceptions are if an Applicant:

• Is assigned a NAICS code beginning with 72 and employs no more than 300 employees per physical location; or
• Is a news organization that is majority owned or controlled by a business concern that is assigned NAICS code 511110 or a NAICS code beginning with 5151, or is a nonprofit public broadcasting entity with a trade or business under NAICS code 511110 or 5151, and, in either case, employs no more than 300 employees per physical location.

For a for-profit business, gross receipts generally are all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. These terms carry the definitions used and reported on IRS tax return forms. 

Gross receipts do not include the following: 

• taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers (this does not include taxes levied on the concern or its employees); 
• proceeds from transactions between a concern and its domestic or foreign affiliates; and 
• amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. 

All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts. 

For a nonprofit 501(c)(3) organization, a 501(c)(19) veterans organization, an eligible nonprofit news organization, an eligible 501(c)(6) organization, or an eligible destination marketing organization, gross receipts means gross receipts within the meaning of section 6033 of the Internal Revenue Code of 1986, which is the gross amount received by the organization during its annual accounting period from all sources without reduction for any costs or expenses including, for example, cost of goods or assets sold, cost of operations, or expenses of earning, raising, or collecting such amounts. Thus “gross receipts” includes, but is not limited to:

(i) the gross amount received as contributions, gifts, grants, and similar amounts without reduction for the expenses of raising and collecting such amounts, 

(ii) the gross amount received as dues or assessments from members or affiliated organizations without reduction for expenses attributable to the receipt of such amounts, 

(iii) gross sales or receipts from business activities (including business activities unrelated to the purpose for which the organization qualifies for exemption, the net income or loss from which may be required to be reported on Form 990-T), 

(iv) the gross amount received from the sale of assets without reduction for cost or other basis and expenses of sale, and 

(v) the gross amount received as investment income, such as interest, dividends, rents, and royalties.

Gross receipts of a borrower’s affiliates (unless a waiver of affiliation applies) are calculated by adding the gross receipts of the business concern with the gross receipts of each affiliate.

No. The amount of any forgiven First Draw PPP Loan or any EIDL advance, which are not subject to federal income tax, is not included in the calculation of “gross receipts”. 

Answer: The appropriate reference periods depend on how long the Applicant has been in business:

• For all Applicants, except those satisfying the conditions set forth below, the Applicant must demonstrate that gross receipts in any calendar quarter of 2020 were at least 25 percent lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019 if they were in business in 2019. 
• For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25 percent lower than during either the third or fourth quarters of 2019. 
• For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25 percent lower than the fourth quarter of 2019. 
• For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25 percent lower than the first quarter of 2020.

The following are the primary sets of documentation Applicants can provide to substantiate their certification of a 25 percent gross receipts reduction (only one set is required):

• Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the Applicant must annotate which line item(s) constitute gross receipts. 
• Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. The Applicant must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions). 
• Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the Applicant must fill out the return forms, compute the relevant gross receipts value (see Question 5), and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.

The amounts required to compute gross receipts varies by the entity tax return type:

• For self-employed individuals other than farmers and ranchers (IRS Form 1040 Schedule C): sum of line 4 and line 7 (If you file multiple Schedule C forms on the same Form 1040, you must include and sum across all of them.) 
• For self-employed farmers and ranchers (IRS Form 1040 Schedule F): sum of lines 1b and 9
• For partnerships (IRS Form 1065): sum of lines 2 and 8, minus line 6
• For S-Corporations (IRS Form 1120-S): sum of lines 2 and 6, minus line 4 
• For C-Corporations (IRS Form 1120): sum of lines 2 and 11, minus the sum of lines 8 and 9 
• For nonprofit organizations (IRS Form 990): the sum of lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Part VIII
• For nonprofit organizations (IRS Form 990-EZ): sum of lines 5b, 6c, 7b, and 9 of Part I. 
• LLCs should follow the instructions that apply to their tax filing status in the reference periods.

(Note: Any of the following included in the specific tax form lines must be excluded from the computation and annotated on the return: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. In particular, for tax returns that include sales tax as income and then as a deduction, annotate next to the “taxes and license” line of the return the amount of such taxes that were included in income.)

For a Second Draw PPP Loan amount greater than $150,000, the applicant must provide documentation substantiating the reduction in gross receipts with its Second Draw Borrower Application Form (SBA Form 2483-SD or lender’s equivalent form). The documentation must support the amounts provided in the application.

For a Second Draw PPP Loan amount of $150,000 or less, the borrower must provide documentation substantiating the reduction in gross receipts before or at the time the borrower seeks loan forgiveness (or upon SBA request). The documentation must clearly identify both of the reference quarters (if not using annual comparison), must contain the gross receipts amounts for both quarters, and support the amounts provided.

(Payroll documentation to substantiate the amount of the loan requested must still be provided with the Second Draw PPP Loan application. See below for more information.)

An applicant may provide IRS Form W-2s and IRS Form W-3 or payroll processor reports, including quarterly and annual tax reports, in lieu of IRS Form 941. Additionally, very small businesses that file an annual IRS Form 944 or agricultural employers that file an annual IRS Form 943 should rely on and provide IRS Form 944 or IRS Form 943 in lieu of IRS Form 941. An applicant may provide records from a retirement administrator to document employer retirement contributions. An applicant may also provide records from a health insurance company or third-party administrator for a self-insured plan to document employer health insurance contributions.

No, payroll costs from the precise 12-month period prior to the First Draw PPP Loan cannot be used to compute the Second Draw PPP Loan amount. Any borrower that used payroll costs from the prior 12 months when computing its First Draw PPP Loan amount can calculate the amount for its Second Draw PPP Loan amount using calendar year 2019 or calendar year 2020 payroll costs. A borrower that used calendar year 2019 for its First Draw PPP Loan amount may continue to do so

For a for-profit business, gross receipts generally are all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. These terms carry the definitions used and reported on IRS tax return forms. 

Gross receipts do not include the following: 

• taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers (this does not include taxes levied on the concern or its employees); 
• proceeds from transactions between a concern and its domestic or foreign affiliates; and 
• amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. 

All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts. 

For a nonprofit 501(c)(3) organization, a 501(c)(19) veterans organization, an eligible nonprofit news organization, an eligible 501(c)(6) organization, or an eligible destination marketing organization, gross receipts means gross receipts within the meaning of section 6033 of the Internal Revenue Code of 1986, which is the gross amount received by the organization during its annual accounting period from all sources without reduction for any costs or expenses including, for example, cost of goods or assets sold, cost of operations, or expenses of earning, raising, or collecting such amounts. Thus “gross receipts” includes, but is not limited to:

(i) the gross amount received as contributions, gifts, grants, and similar amounts without reduction for the expenses of raising and collecting such amounts, 

(ii) the gross amount received as dues or assessments from members or affiliated organizations without reduction for expenses attributable to the receipt of such amounts, 

(iii) gross sales or receipts from business activities (including business activities unrelated to the purpose for which the organization qualifies for exemption, the net income or loss from which may be required to be reported on Form 990-T), 

(iv) the gross amount received from the sale of assets without reduction for cost or other basis and expenses of sale, and 

(v) the gross amount received as investment income, such as interest, dividends, rents, and royalties.

Gross receipts of a borrower’s affiliates (unless a waiver of affiliation applies) are calculated by adding the gross receipts of the business concern with the gross receipts of each affiliate.

No. The amount of any forgiven First Draw PPP Loan or any EIDL advance, which are not subject to federal income tax, is not included in the calculation of “gross receipts”. 

Answer: The appropriate reference periods depend on how long the Applicant has been in business:

• For all Applicants, except those satisfying the conditions set forth below, the Applicant must demonstrate that gross receipts in any calendar quarter of 2020 were at least 25 percent lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019 if they were in business in 2019. 
• For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25 percent lower than during either the third or fourth quarters of 2019. 
• For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25 percent lower than the fourth quarter of 2019. 
• For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25 percent lower than the first quarter of 2020.

The following are the primary sets of documentation Applicants can provide to substantiate their certification of a 25 percent gross receipts reduction (only one set is required):

• Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the Applicant must annotate which line item(s) constitute gross receipts. 
• Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. The Applicant must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions). 
• Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the Applicant must fill out the return forms, compute the relevant gross receipts value (see Question 5), and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.

The amounts required to compute gross receipts varies by the entity tax return type:

• For self-employed individuals other than farmers and ranchers (IRS Form 1040 Schedule C): sum of line 4 and line 7 (If you file multiple Schedule C forms on the same Form 1040, you must include and sum across all of them.) 
• For self-employed farmers and ranchers (IRS Form 1040 Schedule F): sum of lines 1b and 9
• For partnerships (IRS Form 1065): sum of lines 2 and 8, minus line 6
• For S-Corporations (IRS Form 1120-S): sum of lines 2 and 6, minus line 4 
• For C-Corporations (IRS Form 1120): sum of lines 2 and 11, minus the sum of lines 8 and 9 
• For nonprofit organizations (IRS Form 990): the sum of lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Part VIII
• For nonprofit organizations (IRS Form 990-EZ): sum of lines 5b, 6c, 7b, and 9 of Part I. 
• LLCs should follow the instructions that apply to their tax filing status in the reference periods.

(Note: Any of the following included in the specific tax form lines must be excluded from the computation and annotated on the return: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. In particular, for tax returns that include sales tax as income and then as a deduction, annotate next to the “taxes and license” line of the return the amount of such taxes that were included in income.)

For a Second Draw PPP Loan amount greater than $150,000, the applicant must provide documentation substantiating the reduction in gross receipts with its Second Draw Borrower Application Form (SBA Form 2483-SD or lender’s equivalent form). The documentation must support the amounts provided in the application.

For a Second Draw PPP Loan amount of $150,000 or less, the borrower must provide documentation substantiating the reduction in gross receipts before or at the time the borrower seeks loan forgiveness (or upon SBA request). The documentation must clearly identify both of the reference quarters (if not using annual comparison), must contain the gross receipts amounts for both quarters, and support the amounts provided.

(Payroll documentation to substantiate the amount of the loan requested must still be provided with the Second Draw PPP Loan application. See below for more information.)

An applicant may provide IRS Form W-2s and IRS Form W-3 or payroll processor reports, including quarterly and annual tax reports, in lieu of IRS Form 941. Additionally, very small businesses that file an annual IRS Form 944 or agricultural employers that file an annual IRS Form 943 should rely on and provide IRS Form 944 or IRS Form 943 in lieu of IRS Form 941. An applicant may provide records from a retirement administrator to document employer retirement contributions. An applicant may also provide records from a health insurance company or third-party administrator for a self-insured plan to document employer health insurance contributions.

No, payroll costs from the precise 12-month period prior to the First Draw PPP Loan cannot be used to compute the Second Draw PPP Loan amount. Any borrower that used payroll costs from the prior 12 months when computing its First Draw PPP Loan amount can calculate the amount for its Second Draw PPP Loan amount using calendar year 2019 or calendar year 2020 payroll costs. A borrower that used calendar year 2019 for its First Draw PPP Loan amount may continue to do so

• In general, the maximum loan amount for a Second Draw PPP Loan is equal to the lesser of two and half months of the borrower’s average monthly payroll costs or $2 million, except as otherwise specified below. A borrower’s average monthly payroll costs may be based on calendar year 2020, calendar year 2019, or as otherwise specified. ‘‘Payroll costs’’ has the same meaning as in the First Draw PPP rules and is calculated in the same manner. In calculating a borrower’s payroll costs, the borrower must subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the time period during which the payments are made or the obligation to make the payments is incurred.
• Except as otherwise provided, the maximum amount of a Second Draw PPP Loan is calculated as the lesser of:
  • The product obtained by multiplying:
    • The average total monthly payment for payroll costs incurred or paid by the borrower during 2019 or 2020 (at the election of the borrower) by 2.5;
      • or $2,000,000.
• The maximum amount of a Second Draw PPP Loan made to a borrower assigned a NAICS code beginning with 72 at the time of disbursement (that is not a seasonal employer, a new entity, a borrower with self-employment income, or a partnership is calculated as the lesser of:
  • The product obtained by multiplying:
    • The average total monthly payment for payroll costs incurred or paid by the borrower during either 2019 or 2020 (at the borrower’s election) by 3.5;
      • or $2,000,000.

Borrowers are permitted to use payroll costs from either calendar year 2019 or calendar year 2020 for their Second Draw PPP Loan amount calculation. (All components of payroll costs must be from the same calendar year. Payroll costs, including for covered benefits, can only be included for employees whose principal place of residence is in the United States.)

Documentation, including IRS forms, must be supplied for the selected reference period. If a borrower is using the same lender and same payroll timeframe as it used for its First Draw PPP Loan and already submitted the required payroll documentation to the lender, no additional payroll documentation is required to be submitted with its Second Draw PPP Loan application.

A borrower that used calendar year 2019 for its First Draw PPP Loan amount may continue to do so. Any borrower that used payroll costs from the prior 12 months when computing its First Draw PPP Loan amount can calculate the amount for its Second Draw PPP Loan amount using calendar year 2019 or calendar year 2020 payroll costs. (Borrowers who are not self-employed (including sole proprietorships and independent contractors) are also permitted to use the precise 1-year period before the date on which the Second Draw Loan is made to calculate payroll costs if they choose not to use 2019 or 2020.) 

Employee contributions and deductions from pay for flexible spending arrangements (FSA) or other nontaxable benefits under a section 125 cafeteria plan, qualified transit or parking benefits (up to $270 a month), and group life insurance (for up to $50,000 of coverage) may have been excluded from IRS Form 941 Taxable Medicare wages & tips. However, pre-tax employee contributions to retirement plans are included in Taxable Medicare wages & tips and should not be added to that figure to arrive at gross pay.

Payroll costs are calculated on a gross basis without regard to federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees’ pay. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer. However, payroll costs do not include the employer’s share of payroll tax. For example, the wages of an employee who earned $4,000 per month in gross wages, from which $500 in federal taxes was withheld, count as $4,000 in payroll costs. However, the employer-side federal payroll taxes imposed on the $4,000 in wages are excluded from payroll costs under the statute. 

The definition of “payroll costs” in the CARES Act, 15 U.S.C. 636(a)(36)(A)(viii), excludes “taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period”. As described above, the SBA interprets this statutory exclusion to mean that payroll costs are calculated on a gross basis, without subtracting federal taxes that are imposed on the employee or withheld from employee wages. Unlike employer-side payroll taxes, such employee-side taxes are ordinarily expressed as a reduction in employee takehome pay; their exclusion from the definition of payroll costs means payroll costs should not be reduced based on taxes imposed on the employee or withheld from employee wages. This interpretation is consistent with the text of the statute and advances the legislative purpose of ensuring workers remain paid and employed. Further, because the reference period for determining a borrower’s maximum loan amount will largely or entirely precede the period during which borrowers will be subject to the restrictions on allowable uses of the loans, for purposes of the determination of allowable uses of loans and the amount of loan forgiveness, this statutory exclusion will apply with respect to such taxes imposed or withheld at any time, not only during such period.

(Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the covered period following disbursement of the PPP loan.)

The following methodology should be used to calculate the maximum amount that can be borrowed for partnerships (partners’ self-employment income should be included on the partnership’s PPP loan application, individual partners may not apply for separate PPP loans): 

• Step 1: Compute 2019 payroll costs by adding the following:
  • 2019 Schedule K-1 (IRS Form 1065) Net earnings from self-employment of individual U.S.-based general partners that are subject to self-employment tax, multiplied by 0.9235, up to $100,000 per partner; (If the partnership is using 2020 payroll costs and the Form 1065 for 2020 has not yet been completed, fill out the form.) 
    • Compute the net earnings from self-employment of individual U.S.-based general partner that are subject to self-employment tax from box 14a of IRS Form 1065 Schedule K-1 and subtract (i) any section 179 expense deduction claimed in box 12; (ii) any unreimbursed partnership expenses claimed; and (iii) any depletion claimed on oil and gas properties. 
      • if this amount is over $100,000 for a partner, reduce it to $100,000; 
      • if this amount is less than zero for a partner, set this amount at zero; 
  • 2019 gross wages and tips paid to employees whose principal place of residence is in the United States (if any), up to $100,000 per employee, which can be computed using: 
    • 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter, 
    • Plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips,
    • Minus (i) any amounts paid to any individual employee in excess of $100,000, and (ii) any amounts paid to any employee whose principal place of residence is outside the United States; 
  • 2019 employer contributions for employee (but not partner) group health, life, disability, vision, and dental insurance, if any (portion of IRS Form 1065 line 19 attributable to those contributions); 
  • 2019 employer contributions to employee (but not partner) retirement plans, if any (IRS Form 1065 line 18); and 
  • 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms), if any. 
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5. (Multiply by 3.5 if your business is in the Accommodation and Food Services sector and the business activity code reported on your most recent IRS Form 1065 Line C begins with 72.)

The partnership’s 2019 IRS Form 1065 (including K-1s) must be provided to substantiate the applied-for Second Draw PPP Loan amount. If the partnership has employees, other relevant supporting documentation, including the 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or group health, life, disability, vision, and dental insurance contributions must also be provided to substantiate the PPP loan amount. If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date. If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided.

(Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the covered period following disbursement of the PPP loan.)

The following methodology should be used to calculate the maximum amount that can be borrowed for corporations, including S and C corporations: 

• Step 1: Compute 2019 payroll costs by adding the following: 
  • 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, up to $100,000 per employee, which can be computed using: 
    • 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter, 
    • Plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, 
    • Minus (i) any amounts paid to any individual employee in excess of $100,000, and (ii) any amounts paid to any employee whose principal place of residence is outside the United States; 
  • 2019 employer group health, life, disability, vision, and dental insurance contributions (portion of IRS Form 1120 line 24 or IRS Form 1120-S line 18 attributable to those contributions); (Note that employer contributions for group health, life, disability, vision, and dental insurance for S-Corporation employees who own more than a 2 percent stake in the business (or employees who are family members of such owners) are not included in this figure as such contributions are already included in gross wages.) 
  • 2019 employer retirement contributions (IRS Form 1120 line 23 or IRS Form 1120-S line 17); and 
  • 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms). 
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12). • Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5. (Multiply by 3.5 if your business is in the Accommodation and Food Services sector and the business activity code reported on your most recent IRS Form 1120 Schedule K, line 2A (IRS Form 1120-S item B) begins with 72.)

The corporation’s 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed business tax return (IRS Form 1120 or IRS 1120-S) or other documentation of any retirement and group health, life, disability, vision, and dental insurance contributions, must be provided to substantiate the applied-for Second Draw PPP Loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.

(Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the covered period following disbursement of the PPP loan.)

The following methodology should be used to calculate the maximum amount that can be borrowed for eligible nonprofit religious institutions, veterans organizations and tribal businesses: 

• Step 1: Compute 2019 payroll costs by adding the following: 
  • 2019 gross wages and tips paid to employees whose principal place of residence is in the United States, up to $100,000 per employee, which can be computed using: 
    • 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter, 
    • Plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, 
    • Minus (i) any amounts paid to any individual employee in excess of $100,000, and (ii) any amounts paid to any employee whose principal place of residence is outside the U.S.; 
  • 2019 employer group health, life, disability, vision, and dental insurance contributions; 
  • 2019 employer retirement contributions and 
  • 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms). 
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12). 
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5. (Multiply by 3.5 if your business is in the Accommodation and Food Services sector [NAICS code that begins with 72, e.g., a hotel, restaurant, bar.]) 

The entity’s 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with documentation of any retirement and group health, life, disability, vision, and dental insurance contributions, must be provided to substantiate the applied-for Second Draw PPP loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.

LLCs should follow the instructions that apply to their tax filing status in the reference period used to calculate payroll costs (2019 or 2020)—i.e., whether the LLC filed (or will file) as a sole proprietor, a partnership, or a corporation in the reference period.

(Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the covered period following disbursement of the PPP loan.)

The following methodology should be used to calculate the maximum amount that can be borrowed: 

• Step 1: Compute total payroll costs from when first in operation in 2019 or 2020 through the end of calendar year 2020 by adding the following: 
  • Gross wages and tips paid to your employees whose principal place of residence is in the United States, up to $100,000 per employee annualized, which can be computed using: 
    • IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter the business was in operation, 
    • Plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, 
    • Minus (i) any amounts paid to any individual employee in excess of the product of $8,333 and the number of months in operation through 2020, and (ii) any amounts paid to any employee whose principal place of residence is outside the United States; 
  • Employer group health, life, disability, vision, and dental insurance contributions;(Note that employer contributions for group health, life, disability, vision, and dental insurance for S-Corporation employees who own more than a 2 percent stake in the business [or employees who are family members of such owners] are not included in this figure as such contributions are already included in gross wages.)  
  • Employer retirement contributions; and 
  • Employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms). 
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by number of months in operation from 2019 through the end of 2020). 
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5. (Multiply by 3.5 if your business is in the Accommodation and Food Services sector and the business activity code reported on your most recent income tax return [Form 1120 Schedule K, line 2A for corporations, Form 1120-S item B for S-corporations, and Form 990 Part VIII, adjacent to line 2A for nonprofits] begins with 72.) 

The entity’s IRS Form 941s and state quarterly wage unemployment insurance tax reporting form from each quarter the entity was in operation (or equivalent payroll processor records or IRS Wage and Tax Statements), along with documentation of any retirement and group health, life, disability, vision, and dental insurance contributions, must be provided to substantiate the applied-for Second Draw PPP Loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.

Yes, businesses that are part of the same corporate group cannot receive Second Draw PPP Loans in a total amount of more than $4 million. For purposes of this limit, businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent.

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Bank of America, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 866.457.4892

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from BMO Harris Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 866.618.8686

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Chase Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 800.242.7338

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Citizens Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 888.910.4100

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Cross River Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 877.552.7255

Note: If you received your First Draw PPP loan through Wompy, contact our support team and they can help you get this number

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Fifth Third Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 877.887.0273

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Fundbox, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 855.908.3550

Note: If you received your First Draw PPP loan through Wompy, contact our support team and they can help you get this number

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Harvest Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 619.541.0875

Note: If you received your First Draw PPP loan through Wompy, contact our support team and they can help you get this number

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Huntington Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 800.480.2001

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Kabbage, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 888.986.8263

Note: If you received your First Draw PPP loan through Wompy, contact our support team and they can help you get this number

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Key Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 888.539.4249

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from M&T Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 800.724.6070

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Ondeck, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 888.269.4246

Note: If you received your First Draw PPP loan through Wompy, contact our support team and they can help you get this number

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from PNC Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 855.762.2365

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from TD Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 855.847.0664

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Truist Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 800.659.2955

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from U.S. Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 866.280.3751

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Wells Fargo, you will need to contact them at 844.304.8911 or reach out to your relationship manager to request your PPP First Draw SBA Loan Number. This number is not listed on loan documentation provided for your First Draw PPP Loan.

Note: Wells Fargo may refer to this number as the 10-digit “SBA Loan Guarantee Number”

To obtain your PPP First Draw SBA Loan Number (as is required on the Second Draw PPP Loan application) from Zions Bank, you will need to contact the loan manager who helped you with your First Draw loan, or contact their business support center at 800.290.8690

When you apply for a Second Draw Paycheck Protection Program, you certify that:

• You have read the statements included in this form, including the Statements Required by Law and Executive Orders, and you understand them.
• You are eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) and the Department of the Treasury (Treasury) implementing Second Draw Paycheck Protection Program Loans under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Paycheck Protection Program Rules).
• You, together with any affiliates (if applicable):
  • (1) is an independent contractor, self-employed individual, or sole proprietor with no employees;
  • (2) employ no more than 300 employees; or
    • (3) if NAICS 72, employ no more than 300 employees per physical location;
  • (4) if a news organization that is majority owned or controlled by a NAICS code 511110 or 5151 business or a nonprofit public broadcasting entity with a trade or business under NAICS code 511110 or 5151, employ no more than 300 employees per location.
• You will comply, whenever applicable, with the civil rights and other limitations in this form.
• All loan proceeds will be used only for business-related purposes as specified in the loan application and consistent with the Paycheck Protection Program Rules including the prohibition on using loan proceeds for lobbying activities and expenditures. If you are a news organization that became eligible for a loan under Section 317 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, proceeds of the loan will be used to support expenses at the component of the business concern that produces or distributes locally focused or emergency information.
• You understand that SBA encourages the purchase, to the extent feasible, of American-made equipment and products.
• You are not engaged in any activity that is illegal under federal, state or local law.

If you are an individual, you must also authorize the SBA to request criminal record information about you from criminal justice agencies for the purpose of determining your eligibility for programs authorized by the Small Business Act, as amended.

You must also certify in good faith the following:

• You were in operation on February 15, 2020, have not permanently closed, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for whom you paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.
• Current economic uncertainty makes this loan request necessary to support your ongoing operations.
• You have realized a reduction in gross receipts in excess of 25% relative to the relevant comparison time period.
  • For loans greater than $150,000: you have provided documentation to the lender substantiating the decline in gross receipts.
  • For loans of $150,000 or less: you will provide documentation substantiating the decline in gross receipts upon or before seeking loan forgiveness for the Second Draw Paycheck Protection Program Loan or upon SBA request.
• You received a First Draw Paycheck Protection Program Loan and, before the Second Draw Paycheck Protection Program Loan is disbursed, will have used the full loan amount (including any increase) of the First Draw Paycheck Protection Program Loan only for eligible expenses.
• The funds will be used to retain workers and maintain payroll; or make payments for mortgage interest, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures as specified under the Paycheck Protection Program Rules
• You understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold you legally liable, such as for charges of fraud.
• You understand that loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, covered utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures, and not more than 40% of the forgiven amount may be for non-payroll costs. If required, you will provide to the Lender and/or SBA documentation verifying the number of full-time equivalent employees on the Applicant’s payroll as well as the dollar amounts of eligible expenses for the covered period following this loan.
• You have not and will not receive another Second Draw Paycheck Protection Program Loan.
• You have not and will not receive a Shuttered Venue Operator grant from SBA.
• The President, the Vice President, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, does not directly or indirectly hold a controlling interest in you or your business, with such terms having the meanings provided in Section 322 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
• You are not an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).
• You are not a business concern or entity (a) for which an entity created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or (b) that retains, as a member of the board of directors of the business concern, a person who is a resident of the People’s Republic of China.
• You are not required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612).
• You are not a business concern or entity primarily engaged in political or lobbying activities, including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents.
• You further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. You understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 U.S.C. 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 U.S.C. 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 U.S.C. 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.
• You acknowledge that the Lender will confirm the eligible loan amount using required documents submitted.
• You understand, acknowledge, and agree that the Lender can share any tax information that you have provided with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.