When can small business apply for second ppp loan

When Can Small Businesses Apply for a Second PPP Loan?

The Paycheck Protection Program (PPP) was created as part of the CARES Act in March 2020 to provide financial assistance to small businesses during the COVID-19 pandemic. The program has been modified several times since its inception, and the latest changes were made by the PPP Flexibility Act, which was signed into law on June 5, 2020.

**Who is eligible for a second PPP loan?**

To be eligible for a second PPP loan, a business must meet the following criteria:

*The business must have used all of the funds from its first PPP loan.*
*The business must have experienced a 25% or more reduction in gross revenue in any quarter in 2020 as compared to the same quarter in 2019.*
*The business must have fewer than 300 employees.*
*The business must meet the definition of a small business as defined by the Small Business Administration (SBA).*

**When can businesses apply for a second PPP loan?**

The application period for second PPP loans opened on January 13, 2021. The deadline to apply is March 31, 2021.

**How much can businesses borrow?**

The maximum amount that a business can borrow under the second PPP loan program is $2 million. The amount that a business is eligible to borrow is based on the following factors:

*The average monthly payroll of the business.*
*The number of employees on the payroll.*
*The business’s gross revenue.*

**What are the terms of the second PPP loan?**

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The terms of the second PPP loan are similar to those of the first PPP loan. The loan has a maturity of 5 years and an interest rate of 1%. The loan is also forgivable, which means that the government will not have to repay the loan if it is used for certain expenses, such as payroll, rent, and utilities.

**How to apply for a second PPP loan**

Businesses can apply for a second PPP loan through any participating lender. The application process is similar to the process for the first PPP loan. Businesses will need to provide the lender with documentation of their revenue loss, payroll costs, and other financial information.


The second PPP loan program is a valuable resource for small businesses that are struggling financially due to the COVID-19 pandemic. Businesses that meet the eligibility criteria should consider applying for a loan. The application process is simple and the funds can be used to cover a variety of expenses.

**Additional resources**

* [PPP Flexibility Act](https://www.sba.gov/sites/default/files/2020-06/PPP-Flexibility-Act.pdf)
* [SBA PPP Loan Application](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-loans)
* [PPP Loan Forgiveness](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-loans/loan-forgiveness)


* **What is the difference between the first and second PPP loans?**
* The second PPP loan has a longer maturity, a lower interest rate, and a longer forgiveness period.
* **Can businesses that received a first PPP loan still apply for a second PPP loan?**
* Yes, businesses that received a first PPP loan can still apply for a second PPP loan. However, the businesses must meet the eligibility criteria for the second PPP loan program.
* **How long will it take to receive a second PPP loan?**
* The processing time for second PPP loans is likely to be shorter than the processing time for first PPP loans. However, the processing time will vary depending on the lender.
* **What happens if I don’t use all of the funds from my second PPP loan?**
* If you do not use all of the funds from your second PPP loan, you will not have to repay the unused portion of the loan. The unused portion of the loan will be forgiven.

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