PPP second draw: what to know

When the Paycheck Protection Program originally launched in March 2020, many small businesses hesitated to apply — deterred by uncertainty of the rules, no banking relationship to help with the process, etc. With a “Second Draw” of applications now being accepted, construction businesses can expect more clarity surrounding the funding under the CARES Act.

WHO CAN APPLY FOR A SECOND PPP LOAN?

Federal funding will provide an additional $284 billion for those who missed out on the program last year and for those hoping for a second round of aid. Businesses seeking a Second Draw loan must meet the following requirements:

- No more than 300 employees

- Experienced significant revenue declines between comparable quarters in 2019 and 2020 (at least 25% reduction in gross receipts)

- Have used the full amount of their previous PPP loan

HOW CAN FUNDS BE USED?

Payroll expenses (including benefits), mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs, certain supplier costs and expenses for operations.

The application deadline is March 31.