{"id":16044,"date":"2021-01-20T23:21:03","date_gmt":"2021-01-20T23:21:03","guid":{"rendered":"https:\/\/fieldnation.com\/resources\/second-draw-ppp-loans\/"},"modified":"2025-06-26T14:05:36","modified_gmt":"2025-06-26T19:05:36","slug":"second-draw-ppp-loans","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/second-draw-ppp-loans","title":{"rendered":"PPP loans are back: Here\u2019s what you need to know"},"content":{"rendered":"<p><strong>UPDATE<\/strong>:\u00a0<span style=\"font-weight: 400;\">On <strong>March 3, 2021<\/strong>, the SBA released a new application and <\/span><a href=\"https:\/\/www.journalofaccountancy.com\/news\/2021\/mar\/ppp-borrowers-can-use-gross-income-sba-rules.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">loan calculation formula<\/span><\/a><span style=\"font-weight: 400;\"> for self-employed workers and sole proprietors who file IRS Form 1040 Schedule C. This new formula uses gross income rather than net profit to calculate the loan amount, which could allow those who qualify to receive a larger loan. For more information, read our section about &#8220;How much applicants can borrow.&#8221;<\/span><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">Between April and August 2020, the <\/span><a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\/coronavirus-relief-options\/paycheck-protection-program\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Paycheck Protection Program<\/span><\/a><span style=\"font-weight: 400;\"> (PPP) distributed $523 billion in forgivable loans to 5.2 million small businesses. Now the program is restarting with $284 billion of funding.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Want to learn more about eligibility, important dates, and the application process? Whether you\u2019re applying for the first time or for a second round, here\u2019s what you need to know.<\/span><\/p>\n<h2><b>What is the Paycheck Protection Program?<\/b><b><br \/>\n<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The PPP provides loans that help businesses keep their workforce employed. The program covers up to 24 weeks of payroll costs and qualifying non-payroll costs. <\/span><\/p>\n<h2><b>Who\u2019s eligible?<\/b><b><br \/>\n<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">All small businesses are eligible to apply for the PPP, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies with less than 500 workers\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sole proprietors (those who pay taxes on a <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040sc.pdf\" target=\"_blank\" rel=\"noopener\">Schedule C<\/a>)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Independent contractors who collect 1099-MISC forms (however, for the application you&#8217;ll need to submit a <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040sc.pdf\" target=\"_blank\" rel=\"noopener\">Schedule C<\/a>, not your 1099)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gig workers (those who take on-call jobs)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The only stipulation is that your business was operational as of February 15, 2020. Also, applicants must certify that \u201ccurrent economic uncertainty\u201d makes their loan request necessary. It&#8217;s also important to note that you cannot receive Unemployment Benefits and a PPP loan at the same time.<\/span><\/p>\n<a name=\"can-companies-sole-proprietors-or-contractors-apply-for-a-second-time\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"can-companies-sole-proprietors-or-contractors-apply-for-a-second-time\"><b>Can companies, sole proprietors, or contractors apply for a second time?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The new funding is available to both first-time applicants and returning borrowers. Employers who already took out a loan may be eligible for a second loan. This is known as a \u201cSecond Draw\u201d PPP loan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be eligible for a second PPP loan, applicants must<\/span><b>:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employ 300 or fewer employees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have used up their first PPP loan proceeds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demonstrate that their revenue in any 2020 quarter is at least 25 percent less than the same 2019 quarter<\/span><\/li>\n<\/ul>\n<a name=\"how-much-can-applicants-borrow\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"how-much-can-applicants-borrow\"><b>How much can applicants borrow?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">First-time borrowers are eligible for 2.5 times their average monthly payroll cost, up to $10 million. Second-time borrowers are eligible for up to $2 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The maximum PPP loan amount that a sole proprietor or self-employed individual can borrow is $20,833 unless the business has other employees.<\/span><\/p>\n<p>On March 3, t<a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\/coronavirus-relief-options\/paycheck-protection-program\" target=\"_blank\" rel=\"noopener\">he SBA released a new application<\/a> and loan calculation formula.<\/p>\n<p>Self-employed workers and sole proprietors who file IRS Form 1040 Schedule C can now list gross income on line 7 of the tax form. Gross income will be used to determine their eligible loan amount. Previously, Schedule C filers listed their net profit from line 31 on the form.<\/p>\n<p>Using gross income rather than net profit could allow qualified borrowers to receive a larger forgivable loan amount.<\/p>\n<a name=\"when-should-borrowers-apply\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"when-should-borrowers-apply\"><b>When should borrowers apply?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Most borrowers can apply starting January 19, 2021. The deadline to apply is March 31, 2021.<\/span><\/p>\n<a name=\"do-ppp-loans-have-to-be-paid-back\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"do-ppp-loans-have-to-be-paid-back\"><b>Do PPP loans have to be paid back?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The loan can be forgiven if certain conditions are met. At least 60 percent of the loan must be used to pay workers, and the rest must be spent on qualifying expenses such as rent, utilities, and mortgage interest payments. The money must be spent between eight and 24 weeks after the loan is funded.<\/span><\/p>\n<a name=\"whats-the-best-way-to-find-a-lender\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"whats-the-best-way-to-find-a-lender\"><b>What\u2019s the best way to find a lender?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PPP loans are available through many banks, credit unions, and community lenders. If you have an existing banking relationship, ask them if they are a participating lender.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be matched with a participating PPP lender, visit <\/span><a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\/lender-match\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">SBA Lender Match<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<a name=\"are-there-any-downsides-to-applying-for-the-loans\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"are-there-any-downsides-to-applying-for-the-loans\"><b>Are there any downsides to applying for the loans?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">No. If you think you might use the money, you should apply. There are no penalties or costs associated with applying. Also, you don\u2019t necessarily have to use the funds if you are approved.<\/span><\/p>\n<a name=\"where-can-i-find-more-information\" class=\"fldn-table-of-contents-anchor\"><\/a><h2 id=\"where-can-i-find-more-information\"><b>Where can I find more information?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.sba.gov\/page\/coronavirus-covid-19-small-business-guidance-loan-resources\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">SBA<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.uschamber.com\/coronavirus#guides\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Chamber of Commerce<\/span><\/a><span style=\"font-weight: 400;\"> have published detailed information about loans and other resources available to small businesses. You can also contact your local SBA approved lender to answer any questions you have.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paycheck Protection Program (PPP) loans are back, starting with $284 billion of funding.\u00a0Whether you\u2019re applying for the first or second time, here\u2019s what you need to know.<\/p>\n","protected":false},"author":53,"featured_media":16928,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"xn-wppe-expiration":[],"xn-wppe-expiration-action":[],"xn-wppe-expiration-prefix":[],"footnotes":""},"content-group":[],"class_list":["post-16044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","fldn_content_type-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PPP loans are back: Here\u2019s what you need to know | Field Nation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fieldnation.com\/resources\/second-draw-ppp-loans\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PPP loans are back: Here\u2019s what you need to know\" \/>\n<meta property=\"og:description\" content=\"Paycheck Protection Program (PPP) loans are back, starting with $284 billion of funding.\u00a0Whether you\u2019re applying for the first or second time, here\u2019s what you need to know.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fieldnation.com\/resources\/second-draw-ppp-loans\" \/>\n<meta property=\"og:site_name\" content=\"Field Nation\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-20T23:21:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-26T19:05:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fieldnation.com\/wp-content\/uploads\/2023\/01\/what-history-can-tell-us-preview-image_r01v01.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Field Nation\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Want to learn more about loan eligibility, important dates, and the application process? 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