Second Draw Certifications

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What are the certifications for a Second Draw PPP Loan?

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.