The latest Small Business Administration (SBA) Paycheck Protection Program (PPP) program provides a modification if you are already a PPP business borrower and your first PPP loan has not yet been forgiven, you may be eligible to receive an increase on your first loan and apply for a second loan.
Eligibility requirements include:
- Received a PPP loan on or before August 8, 2020
- Have not gone through loan forgiveness
- 500 or fewer employees
- Received less money initially due to:
- Intentionally taking less money
- Change in guidelines after receiving the loan
- Returning all or part of the funds during the safe harbor period
You may be eligible to receive an increase on your first loan. In addition, you are interested in applying for a second loan, $10 million is the maximum amount of a second loan.
There are several factors:
- If you have already received loan forgiveness on your original loan, you are not eligible to apply for a modification loan.
- If you apply for loan forgiveness now, you are not eligible to apply for a modification loan.
- If your loan forgiveness application is currently with the SBA for its decisioning (the SBA’s review can take up to 90 days), the SBA could delay your application for a second draw loan.
You may want to wait to apply for forgiveness if:
• You believe you are eligible to receive a modification loan and an additional amount on your first loan.
• You want to apply for a second draw loan (apply for your second draw loan before applying for forgiveness).
Visit the SBA to learn more.
Click here to apply for a modification loan.
We expect strong demand for all PPP loan programs and are staffing our teams accordingly. We will aim to reply to your request within 5 business days; however, we appreciate your patience and understanding should the volume of requests delay our response time.
The information provided is intended for informational use only and is subject to change.