Last week the SBA and Treasury released the new application for Second Draw PPP loans (SBA Form 2483-SD), along with additional guidance for eligible borrowers.

In order to be eligible for a Second Draw PPP loan, borrowers must meet the following criteria:

  • Was eligible for and received a First Draw PPP loan
  • Has used, or will use, the full amount of its First Draw PPP loan on eligible expenses
  • Employs no more than 300 employees
  • Had a 25% reduction in gross receipts during any calendar quarter in 2020 compared to the same quarter in 2019

For most eligible borrowers, the calculation of the Second Draw PPP loan amount will be the same as the First Draw PPP loan, with the following exceptions:

  • Borrowers may elect to use 2020 payroll costs to determine their average monthly payroll instead of 2019
  • The loan amount for borrowers assigned a NAICS code beginning with 72 (such as hotels and restaurants) is 3.5 times their average monthly payroll instead of 2.5

If a borrower uses its 2019 payroll costs to determine average monthly payroll and uses the same lender that made the First Draw PPP loan, it does not have to resubmit supporting documentation for its payroll costs with its Second Draw application. In this case, the only additional required documentation would be documents establishing that the borrower experienced a 25% reduction in gross receipts, such as relevant quarterly income statements or bank statements.

If you have not received a First Draw PPP loan, you can still apply using the recently revised SBA Form 2483 application.

If you need our assistance determining your 2019 and 2020 quarterly gross receipts, or wish to calculate your average monthly payroll using 2020 instead of 2019, please contact your JMF professional business advisors or email