The Small Business Administration is now accepting second-draw PPP loan applications from borrowers who previously submitted first-draw loan applications in calendar year 2021.
According to SBA, in order for these borrowers to receive a second-draw loan, their first-draw loan “must be fully disbursed and reflected as such within E-Tran. This process can occur naturally with the 1502 process or via direct updates in E-Tran if required,” SBA said. To be eligible for a second-draw loan, the borrower must have received a first-draw PPP loan and have used, or will use, the full amount of the first-draw PPP loan on or before the expected date on which the second-draw PPP loan is disbursed to the borrower.
SBA also added two additional organizational types—single member LLCs and qualified joint-venture (spouses)—that can be used by borrowers when using the Schedule C gross income PPP calculation. SBA will update its PPP platform and the E-Tran system in the coming days to reflect these changes.