Can I Get 2 PPP Loans?
The Paycheck Protection Program (PPP) was created by the US government’s CARES Act as a way to assist businesses financially as they weather the uncertainty of the Coronavirus pandemic. While the PPP has been extremely beneficial to many businesses, leaving them with the money they need to continue operating, the question remains – can a business get a second PPP loan?
The first step to receiving a second PPP loan is to make sure that you meet the eligibility requirements. Businesses must have less than 300 employees, have been affected by the pandemic financially, and have used up their first PPP loan, in order to be eligible for consideration for a second loan. Additionally, businesses must demonstrate that the second loan is necessary to continue their operations.
Second Draw PPP Loans
In December 2020, the new Second Draw PPP loans were made available. This new type of loan is specifically designed for businesses who have received the first PPP loan, but still need additional financial assistance. Business owners must provide evidence that proves they experienced a 25 percent or greater revenue loss due to the pandemic.
What You Need to Apply for a Second Draw PPP Loan
- 2019 Tax Return: Business owners must provide their 2019 tax return to prove their revenue loss due to the pandemic.
- Staff Information: Businesses must provide their staff information to help determine their eligibility for the loan.
- Other Documentation: Businesses should also prepare any other documentation that may be requested, depending on their unique situation.
Businesses may be eligible for a second PPP loan if they meet the requirements and demonstrate a revenue loss due to the pandemic. To apply for a Second Draw PPP loan, businesses should prepare their 2019 tax return, staff information, and any other documentation that may be requested. Understanding the eligibility requirements and preparing the necessary documents can help businesses get the financial assistance they need to continue operating during this challenging time.
Can I get two PPP loans for two different businesses?
Yes, you can get two PPP loans for two different businesses. You will need to provide separate application information for each business, including proof of payroll and other eligible expenses. The total amount of the loans cannot exceed $10 million.
Can I use the same bank to apply for two PPP loans for two different businesses?
No, you cannot use the same bank to apply for two PPP loans for two different business. The SBA has strict guidelines prohibiting applicants from receiving multiple PPP loans. The SBA also prohibits an entity from having multiple lenders process loan applications in an effort to receive duplicative funds.
Can I use the same lender to get PPP loans for multiple businesses?
Yes, you can use the same lender to get PPP loans for multiple businesses. It is often advisable to go through the same lender if you have multiple businesses, as doing so may make the loan application process easier and more streamlined.