Second Draw PPP Applicants
Recent legislation authorizes Second Draw PPP Loans to borrowers who received one in 2020 or 2021. At this time, we are only accepting applications for borrowers who received their First Draw PPP Loan from Nusenda. If you received your PPP Loan from another financial institution, please visit the Lender Match application on the SBA's website to locate a participating lender.
We are sharing these highlights in an effort to help you prepare to apply. This information is based on SBA guidance as of March 18, 2021 and is subject to change based on additional guidance from the U.S. Department of Treasury and the U.S. Small Business Administration (SBA). Due to the rapid pace of these changes and potential for new guidance, Nusenda makes no representations regarding this information. We encourage all business members to visit these resources for updates.
Please see our Paycheck Protection Program Loan Forgiveness Information for details on how recent legislation impacts forgiveness applications.
Any small business that received a PPP loan from Nusenda will be eligible to apply with us for a Second Draw PPP Loan if it meets the following requirements:
- Your business has 300 employees or less (Note: this requirement previously included businesses of up to 500 employees)
- Your business experienced a 25% or greater decline in revenues (or gross receipts) in any quarter of 2020 as compared to the same quarter in 2019. (For businesses formed between June 30, 2019 and February 15, 2020 — alternate revenue tests apply)
- Your business already received a PPP loan, and you have used, or will use, the full amount of your prior PPP loan.
For loans of $150,000 or less: you do not have to provide documentation of the 25% revenue decline when you apply; however, this documentation will be required at the time you submit your Forgiveness Application.
Businesses applying for the new Shuttered Venue Operator (SVO) grants are only eligible for a Second Draw PPP Loan under certain conditions. Specifically, if a PPP borrower receives a First Draw or Second Draw PPP Loan after December 27, 2020, the amount of any subsequently-approved SVO grant will be reduced by the amount of the First Draw or Second Draw PPP Loan. If a PPP borrower receives both a First Draw and a Second Draw PPP Loan after December 27, 2020, the amount of any subsequently-approved SVO grant will be reduced by the combined amount of both PPP loans. If a PPP applicant is approved for an SVO grant before SBA issues a loan number for the PPP loan, the applicant is ineligible for the PPP loan and cannot accept the PPP loan proceeds. SVO grants are a new program under the recent legislation that will be administered directly by the SBA and targets movie theaters, museums, live performing arts, and related businesses.
Loan amounts will generally be the same amount as your initial PPP Loan — calculated as 2.5 times your average monthly payroll costs.
Accommodations and Food Services Businesses (NAICS Code 72): Any business meeting this classification is eligible for a loan amount of 3.5 times your average monthly payroll costs. This is equivalent to your initial PPP loan plus an additional 40% (e.g. if your initial PPP loan was approved for $100,000, your Second Draw PPP Loan would be in the amount of $140,000).
All loans are subject to maximum eligible loan amount of $2 million.