Paycheck Protection Program (PPP) Second Draw Loans
On December 27, 2020, President Trump signed the ECONOMIC AID TO HARD-HIT SMALL BUSINESSES, NONPROFITS, AND VENUES ACT (the Economic Aid Act) (Pub. L. 116-260) into law to provide continued assistance to individuals and businesses that have been financially impacted by the ongoing coronavirus pandemic. PPP Second Draw Loans are available under generally the same terms and conditions available under the PPP First Round with some additional provisions and eligibility requirements.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.
The Independent Bankers Association summarizes PPP Round 2 highlights here.
Western States Bank will continue to support our small business customers and do our part to spur the economic recovery in our local communities. We are now accepting applications for PPP Second Draw Loans and may begin remitting them to the SBA portal on Friday, January 15th. This time, the SBA will conduct additional screening and may take up to several days to issue an SBA loan number indicating approval to fund the loan.
We will require a completed application and documentation to support the calculation of the loan amount. Contact your local WSB lender to apply for a PPP Second Draw Loan. Your local WSB lender can also assist if you have questions on the PPP Round 2 program, or PPP Round 1 advances and forgiveness.
We are here to help you make use of all available resources so your short-term and long-term goals stay within reach.