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How Would a Business Qualify for the New 2nd Draw PPP Loan?

Businesses hardest hit during the COVID-19 pandemic have been targeted for stimulus funds under the law. In fact, businesses can’t qualify for a PPP loan unless they were in operation by Feb. 15, 2020.

A second draw PPP loan is available to eligible businesses who have previously received an original PPP loan and meet certain requirements, which include:

  • Employing fewer than 300 people

  • Having used or will use all funds from their first PPP loan

  • Showing a reduction in gross receipts of 25 percent or more during any quarter in 2020 when compared to that same quarter in 2019.

How Do I Apply for a 2nd Draw PPP Loan?

  • For loans up to $150,000, businesses would need to submit a certification with their loan application attesting that the business meets the revenue loss requirements (25% or more reduction in gross receipts during any quarter in 2020 when compared to that same quarter in 2019).

  • However, they will be required to provide proof that on or before the time of applying for forgiveness that the business met the revenue loss standard.

How Much Can a Business Borrow Under the New PPP Loan?

  • For first-time PPP borrowers, the maximum amount is $10 million.

  • For 2nd Draw PPP, the maximum is $2 million.

  • For both first and second draw PPP loans, the maximum amount one can borrow generally is 2.5 times the average monthly payroll cost based on defined 12-month periods.

  • However, restaurants and businesses with NAICS codes (accommodations and food services) beginning with 72 are eligible for 2nd Draw loans with a maximum of 3.5 times the average monthly payroll cost.

Ready to Take the Next Step?

CardPlus® is willing to assist anyone who needs help with applications and applying for the 2nd Round PPP Loans. 


For quick action call Ferne Glemby direct at 973-714-0807

 or email her team at

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