If you received your First Draw PPP loan in early 2021, you might be able to apply for a Second Draw loan.
Per Small Business Administration (SBA) rules, the covered periods for a borrower’s First Draw and Second Draw cannot overlap.1 If you received your First Draw PPP loan in 2021, you must wait at least eight weeks between your First Draw and when you would receive your Second Draw, if approved by the SBA.2 Once you are eligible, and if funds are still available, you will have the ability to apply for a Second Draw loan through your BlueVine dashboard.
To receive forgiveness for a PPP loan, you can only include PPP eligible expenses that were paid during a loan’s covered period.3 Additionally, to receive full forgiveness, you need to spend at least 60% of a PPP loan on payroll. For example, you can’t include expenses for your First Draw forgiveness application if they were incurred after you receive a Second Draw. This is true even if it means the amount of your First Draw spent on payroll during your First Draw covered period is less than 60%, which could mean the loan cannot be fully forgiven.
There are additional Second Draw eligibility requirements. Review our guide to those conditions for more information.
1 The covered period is the timeframe PPP borrowers must spend their PPP funds on eligible expenses to earn loan forgiveness.
2 Eight weeks is the shortest covered period you can choose under SBA rules.
3 You can also include costs that were incurred during the covered period if they are paid on the immediately next payment date.
The information, opinions, and advice in this post are provided for educational purposes only, and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. Neither BlueVine nor its partners are responsible for the accuracy of any content provided by author(s) or contributor(s). For information about BlueVine products and services, please visit the BlueVine FAQ page. For information about the Paycheck Protection Program, please visit the SBA’s page.