On January 8, 2021, the U.S. Small Business Administration (SBA) released the Borrower Application Form, SBA Form 2483, for businesses applying for a First Draw PPP Loan or requesting an increase in their First Draw PPP Loan. Existing borrowers seeking a Second Draw PPP Loan will need to submit the Second Draw Borrower Application Form, SBA Form 2483-SD.
Release of the applications came hours after the SBA announced that the portal to accept PPP loan applications will re-open for new borrowers and certain existing PPP borrowers the week of January 11th.
Eligibility for First Draw PPP Loan (Or Requesting Increase in First Draw PPP Loan)
Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees, including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors can apply.* Entities with more than 500 employees in certain industries, that meet the SBA’s alternative size standard or size standards for those industries, can also apply.
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they were eligible.
Eligibility for Second Draw PPP Loan
A borrower is generally eligible for a Second Draw PPP Loan if the borrower previously received a First Draw PPP Loan and has or will use the full amount, has no more than 300 employees* and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
*Exceptions in employee numbers apply for businesses in the Accommodation and Food Services sector (NAICS Code beginning with 72).
Please reach out to Brixey & Meyer to help navigate either of the Borrower Applications Forms. We are committed to keeping our clients, friends and families posted on the latest developments. You can simply comment below, visit our website or call us at 866.760.0940.