PPP Update: First and Second Draw Loans Starting the Week of January 11th

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PPP Update: First and Second Draw Loans Starting the Week of January 11th

Paycheck Protection Program (PPP) lending starts back up again on Monday.  The SBA has released Top Line Overviews for First and Second Draw Loans, as well as updated loan applications.  Below are links to this information and we encourage everyone who qualifies for a first or second draw loan to review.

“First Draw” loans are for first time PPP borrowers and, under certain circumstances, for borrowers requesting to modify their initial PPP loan amount because they did not originally receive the full amount for which they are eligible.  Qualifications to receive a first draw loan are the same as they were for initial loans.

“Second Draw” loans are for companies that already received a PPP loan and now qualify for a second based on the Consolidated Appropriations Act of 2021.  To qualify for a second draw loan you must have less than 300 employees (or less than 300 at a single location for certain types of businesses), and must have had at least a 25% reduction in gross receipts for any quarter in 2020 compared to the same quarter in 2019.

First Draw Loan Information

Second Draw Loan Information

If you qualify for a first or second draw PPP loan and have not yet done so, we recommend you contact your banker to let them know.  The SBA portal opens up on Monday, January 11th for community lenders that primarily work with minority- and woman-owned businesses.  The SBA has said that the PPP portal will open up to other lenders soon.  For second draw loans, working with your initial PPP lender will make the process easier.

If you have questions or would like to strategically discuss your situation relative to any of these items, we are here to help.  Reach out to your WR Partner or your relationship manager.  You can also email our COVID-19 task force for assistance.