Skip to Main Content

Second Draw PPP Application FAQs

Please see below for some of the eligibility and terms for Second Draw PPP Loans.
Information regarding new reforms announced 2/22/21 will be added to our
FAQs when we receive final guidance from the SBA.

This information is not comprehensive of program details and we encourage you to consult with your tax, legal and accounting advisors on eligibility requirements. In the meantime, more information can be found on the SBA’s Second Draw PPP Loans webpages.

Collapse All Expand All

How are the number of employees calculated for the exclusivity period?

During the “exclusivity period” February 24 – March 9, 2021, the SBA will only accept applications from borrowers with fewer than 20 employees. Eligibility is based on headcount, regardless of whether they are full-time, part-time or seasonal (not an FTE number).

Who is eligible for a second draw PPP loan?

Businesses eligible for a second draw PPP loan include

  • Businesses with 300 or fewer employees, including affiliates
  • Small businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors and small agricultural co-operatives
  • Businesses must demonstrate at least a 25% reduction in gross receipts in any quarter of 2020, compared to the same quarter in 2019
  • Businesses must have used or will use the full amount of the first PPP loan
  • Businesses must be operational as of February 15, 2020, and either had employees for whom it paid salaries and payroll taxes, paid independent contractors or are a sole proprietorship with no employees

What is the maximum loan amount available for second draw PPP loans?

  • Borrowers may receive a loan amount up to 2.5X the average monthly 2019 or 2020 payroll costs
  • For customers in industries assigned to NAICS code 72 (such as food service or accommodations), borrowers may receive loans of up to 3.5X the average monthly payroll costs
  • Maximum loan amount is the lesser of payroll costs indicated above, or $2 million

What are eligible expenses for my PPP funds?

PPP proceeds can be used to pay the following:

  • Payroll and benefits
  • Mortgage interest
  • Rent and Utilities
  • Worker protection costs related to COVID-19
  • Uninsured property damage costs caused by looting or vandalism during 2020
  • Certain supplier costs and expenses for operations

What documentation do I need for my application?

For second draw PPP Loans $150,000 and under
If your first PPP loan was through Byline Bank and if you’re using 2019 payroll figures to calculate your loan amount, then you only need to complete the Application and Certification. Please note, you will need to submit documentation sufficient to establish a 25% reduction in revenue on or before you submit your forgiveness application.

For second draw PPP Loans over $150,000 OR
If first draw PPP loan was not through Byline Bank
If your loan request is more than $150,000, then please be prepared to submit the following:

  • Documentation sufficient to establish the company experienced a minimum of a 25% reduction in gross receipts from one quarter in 2019 to the same quarter in 2020. This could include one of the following:
    • Quarterly financial statements for the entity. If the financial statements are not audited, you must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, you must annotate which line item(s) constitute gross receipts.
    • Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. You must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions).
    • Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, you must fill out the return forms, compute the relevant gross receipts value, and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.

Loans not using 2019 payroll amounts previously submitted to Byline OR
If first draw PPP loan was not through Byline Bank

For any PPP loan amount where you’re not using 2019 payroll figures previously submitted to Byline with your first draw loan, please be prepared to submit the following:

  •  Payroll report that covers February 15, 2020 must be provided to establish the company was in operation on February 15, 2020
  • Payroll reports from 2019 or 2020 (whichever was used to calculate loan amount) to show average monthly payroll
  • Evidence of retirement and health insurance contributions, if applicable
  • IRS Form 941 from each quarter in 2019 or 2020 (whichever was used to calculate loan amount)
  • State unemployment insurance filings for each quarter in 2019 or 2020 (whichever was used to calculate loan amount)
  • Form 1040 Schedule C for sole proprietors and independent contractors for 2019 or 2020 (whichever was used to calculate loan amount)
  • A worksheet or summary to show how you calculated the revenue decrease as well as the average monthly payroll

What SBA form will be used for second draw PPP loans?

The SBA is using Form 2483-SD – Second Draw Borrower Application which you’ll be able to access in our online PPP application portal (please do not submit this form to us, as applications will only be accepted through our online portal).

What do I need in order to log in?

In order to expedite the application process, we’ve loaded existing PPP borrower information into our portal. In order to log in, you’ll need to provide the following authentication information:

  • Business TIN (EIN or SSN)
  • Authorized representative email
  • Authorized representative personal SSN

If you have questions regarding the authentication information needed or about the PPP application process, please contact us at [email protected].

What are the forgiveness terms for my loan?

Second draw PPP loans may qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained;
  • Loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs

How long do I have to apply?

Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, or until funds are depleted