## When Can Small Businesses Apply for a Second PPP Loan?
The Paycheck Protection Program (PPP) is a loan program that was created to help small businesses keep their employees on the payroll during the COVID-19 pandemic. The first round of PPP loans was available in 2020, and a second round was made available in 2021.
**Eligibility for a Second PPP Loan**
To be eligible for a second PPP loan, businesses must meet the following criteria:
* The business must have fewer than 300 employees.
* The business must have been in operation on February 15, 2020.
* The business must have experienced a decline in revenue of 25% or more in 2020 compared to 2019.
* The business must have used the proceeds of its first PPP loan for eligible expenses, such as payroll, rent, and utilities.
**Loan Amount**
The maximum loan amount for a second PPP loan is $2 million. The loan amount is based on the following factors:
* The average monthly payroll costs of the business in 2019 or 2020.
* The number of employees the business had on average in 2019 or 2020.
* The amount of the business’s first PPP loan.
**Loan Terms**
Second PPP loans have a 5-year term and an interest rate of 1%. The loans are also fully forgivable if the proceeds are used for eligible expenses.
**Application Process**
Businesses can apply for a second PPP loan through any participating lender. The application process is similar to the process for the first round of PPP loans. Businesses will need to provide documentation to prove their eligibility, including:
* Tax returns
* Payroll records
* Bank statements
**Timeline**
The deadline to apply for a second PPP loan is **March 31, 2021**.
### Frequently Asked Questions
**Q: Can businesses that received a first PPP loan apply for a second PPP loan?**
A: Yes, businesses that received a first PPP loan are eligible to apply for a second PPP loan, provided they meet the eligibility criteria.
**Q: How much can businesses borrow with a second PPP loan?**
A: The maximum loan amount for a second PPP loan is $2 million.
**Q: What are the terms of a second PPP loan?**
A: Second PPP loans have a 5-year term and an interest rate of 1%. The loans are also fully forgivable if the proceeds are used for eligible expenses.
**Q: When is the deadline to apply for a second PPP loan?**
A: The deadline to apply for a second PPP loan is **March 31, 2021**.
**Q: Where can businesses apply for a second PPP loan?**
A: Businesses can apply for a second PPP loan through any participating lender.
### Conclusion
The second round of PPP loans is a valuable resource for small businesses that are still struggling due to the COVID-19 pandemic. Businesses that meet the eligibility criteria should consider applying for a second PPP loan to help them keep their employees on the payroll and stay afloat.