Home

IFR PPP First Draw

of first draw PPP loans to use 2019 or 2020 to calculate their maximum loan amount. DATES: Effective Date: Unless otherwise specified in this interim final rule, the provisions of this interim final rule are effective [INSERT DATE OF FILING AT THE OFFICE OF THE FEDERAL REGISTER] IFR: Paycheck Protection Program (PPP) as Amended by the Economic Aid Act. Effective Jan 6, 2021. By Office of Capital Access The First Draw PPP IFR restates certain of the interim final rules issued by the SBA and/or Treasury prior to the enactment of the Economic Aid Act, and updates such rules to incorporate the applicable amendments effectuated by the Economic Aid Act in relation to the First Draw PPP Loans The law reopens the PPP program (through March 31, 2021) to allow First Draw (first-time) loans to businesses that did not receive them in 2020. These loans are provided under the same general terms and with the same limits as the initial PPP loans, with some key enhancements made by the Economic Aid Act

The Consolidated First Draw PPP IFR titled Business Loan Program Temporary Changes: Extension of and Changes to Paycheck Protection Program restates existing regulatory provisions to provide lenders and new PPP borrowers a single regulation to consult on borrower eligibility, lender eligibility, and loan application and. 1 As used herein, the Lender of Record is the Lender that is reflected on SBA's system as the current owner of the First Draw PPP Loan. If the First Draw PPP Loan was sold after loan origination, the Lender of Record is the Lender that purchased the loan. As used herein, the Originating Lender is the Lender that processed the First Draw PPP Loan application and received the SBA loan number that SBA's Consolidated First Draw PPP IFR, Frequently Asked Questions (FAQs), and other guidance about PPP loans under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) apply to Second Draw PPP Loans, except as specified in this IFR.3 The Economic Aid Act includes term

  1. Subsection (c) (1) (ii) of the IFR clarifies that the full amount of the borrower's First Draw PPP Loan includes the amount of any increase on such First Draw PPP Loan made pursuant to the Economic Aid Act
  2. First-draw PPP loans The Economic Aid Act makes first-draw PPP loans available to borrowers that were in operation on Feb. 15, 2020, and come from one of the following groups: Businesses with 500 or fewer employees that are eligible for other SBA 7 (a) loans. Sole proprietors, independent contractors, and eligible self-employed individuals
  3. I. IFR Implementing Updates to PPP First Draw Loans A. OVERVIEW March 31, 2021 is the last day to apply and receive a first draw loan. Borrowers may choose between 2019 and 2020 as their base period for calculating their loan principal. Farmers and Ranchers must use 2019. Lenders may rely on certifications of Borrowers
  4. In addition, in this interim final rule, Treasury exercises its authority under section 1109 of the CARES Act to allow borrowers of first draw PPP loans to use 2019 or 2020 to calculate their maximum loan amount
  5. Paano kalkulahin ang mga halaga ng First Draw ng PPP na Pautang at anu-anong dokumento ang ibibigay. Download pdf. Tiếng Việt | Vietnamese. Các đơn đăng ký phải được nộp bằng tiếng Anh. Tất cả các tài liệu dưới đây chỉ phục vụ mục đích cung cấp thông tin

IFR: Paycheck Protection Program (PPP) as Amended by the

Subsection (b) also confirms that SBA's Consolidated First Draw PPP IFR, Frequently Asked Questions (FAQs), and other guidance about PPP loans under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) apply to Second Draw PPP Loans, except as specified in this 3IFR Increases to first-draw PPP loans can be made only by the lender of record for the loan, i.e., the lender that is reflected in the SBA's system as the current owner of the loan. If the loan was sold after it was originated, the lender that purchased the loan is the lender of record The Consolidated First Draw PPP IFR helpfully restates regulatory provisions and guidance to provide lenders and new PPP borrowers a single regulation to consult on borrower eligibility, lender eligibility, and loan application and origination requirement issues for new First Draw PPP loans, as well as general rules relating to First Draw PPP Loan increases, permissible loan uses, and loan forgiveness The PPP 2 IFR indicates the forgiveness and loan review process for PPP 2 Loans generally will be done under similar terms and conditions as First Draw PPP loans. However, we expect the SBA will issue further guidance on the PPP 2 Loan forgiveness and SBA loan review process in the form of additional interim final rules and frequently asked. The Small Business Administration (SBA) issued an Interim Final Rule (IFR), on Wednesday evening, that changes the way Schedule C filers calculate their maximum loan amount for both first draw and second draw PPP loans. This IFR will benefit Schedule C filers with less than $100,000 of net income (as reflected on line 31 of Schedule C)

One of the interim final rules governs new PPP loans made under the Economic Aid Act and pending loan forgiveness applications for existing PPP loans (the First IFR). The other interim final rule governs second draw PPP loans (the Second IFR). This alert will focus on some of the key provisions of these interim final rules Under the first draw PPP, the maximum amount a borrower can borrow is the lesser of (i) $10 million; and (ii) the amount yielded by a payroll-based formula, which is, in general, 2.5 times average.. Notable Items from the First IFR (for First Time Borrowers) 1. Absence of Revenue Reduction Calculation for First Draw Loans. The most significant distinction between First Draw Loans and Second Draw Loans is the need to demonstrate a 25% reduction in gross receipts. Second time borrowers requesting Second Draw Loans must demonstrate th SBA Releases IFR on Revisions to First Interim Final Rule. 06.11.2020. On June 10, 2020, the U.S. Small Business Administration (SBA) released the Paycheck Protection Program (PPP) - Revisions to First Interim Final Rule. These revisions were released as a response to the enactment of the Paycheck Protection Program Flexibility Act (PPPFA), H.R.

The first IFR consolidates previously issued PPP guidance and IFRs, as well as clarifies the impact of the Act on the existing PPP and First Draw PPP Loans (Consolidated IFR). The second IFR focuses solely on Second Draw PPP Loans and provides new guidance for potential borrowers First Draw PPP Loan under SBA review: The IFR notes that if the borrower's First Draw PPP Loan is under review, the lender will receive notification from SBA when the lender submits an application. SBA releases new PPP IFR, FAQ and loan applications . Mar 04, 2021. The SBA will review a sample of first-draw loans applied for based on Schedule C gross income, which will require the use of new application Form 2483-C (second-draw borrowers will use Form 2483-SD-C) to determine whether loans computed with gross income amounts of $150,000.

• If you received a first draw PPP loan in 2020, you cannot apply for a second first-draw loan, but you may be eligible for a second-draw PPP loan in 2021. p. 47 • Partnerships apply as one legal entity (i.e., each partner does not apply individually) p. 16 . Calculating Payroll Cost (ii) has used, or will use, the full amount of its First Draw PPP Loan (including the amount of any increase on such First Draw PPP Loan) on authorized uses under subsection B.11. of the Consolidated First Draw PPP IFR on or before the expected date on which the Second Draw PPP Loan will be disbursed The application deadline for First Draw PPP Loans is March 31, 2021. The SBA has implemented the reopening of First Draw PPP Loans pursuant to the Consolidated First Draw PPP Interim Final Rule (the Consolidated IFR) issued on or about January 1, 2021, which incorporate

PPP First Draw Eligibility. Under ARPA and the IFR, eligibility criteria for First Draw PPP loans is expanded to encompass NAICS 72 businesses with no more than 500 employees per physical location. PPP First Draw Eligibility . Under ARPA and the IFR, eligibility criteria for First Draw PPP loans is expanded to encompass NAICS 72 businesses with no more than 500 employees per physical location. Internet-only news and periodical publishers assigned NAICS code 519130 are also now eligible for a First Draw loan, provided the business employs. for the first loan is confirmed. Second draw PPP loans are eligible for loan forgiveness under the same terms as initial PPP loans, including the changes to the forgiveness rules set forth in the First IFR. Most borrowers' maximum second draw loan amount is capped at 2.5 times monthly payroll costs up to $2 million, although eligibl Executive Summary. The PPP will open January 11, 2021, but only lasts until March 31, 2021. [1] Eligible businesses that did not receive a PPP loan in 2020 may apply for First Draw Loans. Eligible businesses that received a PPP loan in 2020 may be able to increase the amount of their First Draw Loans or apply for Second Draw Loans Families First Coronavirus Response Act MORE INFO PPP SECOND DRAW IFR : AMMENDED PPP IFR : PPP Loan Forgiveness Application Instructions (Revised 6162020) View all documents in this category. UPDATE: PPP2 and Partnership Income . Published: 01 February 2021.

Paycheck Protection Program: SBA Issues Guidance on First

For First Draw PPP Loans made in 2021 and Second Draw PPP Loans, borrowers use the year (2019 or 2020) that was used to calculate the borrower's loan amount. Send Print Report Related Post This IFR focuses on Section 311 of the Economic Aid Act, which authorizes the SBA to guarantee a second PPP loan to the same borrower (Second Draw Loans). Second Draw Loans may be distributed to borrowers that have used or will use the full amount of the initial PPP loan (First Draw Loan) for authorized purposes on or before the. Per the SBA's Jan. 14, 2021 Interim Final Ruling (IFR) Protection Program (PPP) Second Draw Loans, if a first draw PPP loan has an unresolved issue, which may be due to hold codes or compliance. Generally speaking, the maximum loan amount for First Draw Loans is the lesser of $10 million or an amount calculated using the payroll-based formula. PPP loans that were approved in 2020 used the 2019 or the one-year period before the date on which the loan was made to calculate payroll costs with respect to calculating the maximum loan amounts At 10:00 p.m. CDT on Friday (May 22, 2020), the Small Business Administration (SBA), in coordination with the U.S. Treasury Department, issued two Interim Final Rules (IFRs) addressing forgiveness of Payroll Protection Program (PPP) loans. The first 26-page IFR primarily addresses the PPP Loan Forgiveness and the application for forgiveness (SBA Form 3508) (the Applicatio

SBA Has Issued Rules for First Draw, Second Draw, and

On January 19, 2020, the Small Business Administration (SBA) issued an Interim Final Rule (IFR) titled Business PPP Loan Forgiveness Requirements and Loan Procedures, a 62-page document that mostly recaps guidance already issued about the First Draw Paycheck Protection Program (PPP) loans and updates and incorporates the guidance for the Second Draw PPP loans If an eligible farmer or rancher received a first-draw PPP loan and would be eligible for a higher maximum loan amount based on the formula described in subsection B.4.d. of the consolidated IFR, the lender of record may electronically submit a request through E-Tran to increase the loan amount, again subject to the loan maximum and. Changes to Existing PPP; First Draw PPP Loans 1. Eligibility. The Act and IFR expand the set of eligible borrowers under the PPP to include housing cooperatives (but not condominiums), certain 501(c)(6) trade organizations (discussed below), and nonprofit destination marketing organizations, that employ no more than 300 employees

First Draw PPP Loan under SBA review: The IFR notes that if the borrower's First Draw PPP Loan is under review, the lender will receive notification from SBA when the lender submits an application for a guaranty of a Second Draw PPP Loan. The lender will not receive an SBA loan number until the issue is resolved, and according to the IFR the. The first IFR, Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by the Economic Aid Act (Consolidated First Draw PPP IFR), incorporates changes to PPP requirements made by the Economic Aid Act and consolidates and restates 19 IFRs issued by the SBA and Department Treasury with respect to the round one PPP loan. Second draw PPP loans are eligible for loan forgiveness under the same terms as initial PPP loans, including the changes to the forgiveness rules set forth in the First IFR. Most borrowers' maximum second draw loan amount is capped at 2.5 times monthly payroll costs up to $2 million, although eligible hotels and restaurants may receive a second. On January 6, 2021, the Small Business Administration (SBA) issued an Interim Final Rule (IFR) clarifying the terms and conditions for First Draw PPP loans. Eligible borrowers that have not.

Consolidated IFR for First Draw PPP Loans. The current PPP loan rules resulted from 25 IFRs issued by the SBA between April 2 and June 25, 2020. The SBA has now consolidated, with some changes, 19 of these IFRs into a single IFR. 1 The changes made by the SBA in restating these rules include IFR 3 also explains that SBA may, in its discretion, review a borrower's First Draw PPP Loan and Second Draw PPP Loan at the same time or at different times. So borrowers should be wary that inconsistencies or red flags in connection with a prior PPP or new PPP2 loan could trigger a much broader review of both loans IFR 27 also clarifies a couple other specific examples of businesses that may have received a first PPP loan, but are not permitted to receive a Second Draw PPP Loan: If a Borrower received a PPP Loan despite having been ineligible, they are not permitted to receive a Second Draw PPP Loan based on the fact that they had erroneously received the. Key insights. Certain 2020 first draw PPP loans were flagged with hold codes after SBA review. An unresolved hold issue does not prohibit a borrower from receiving a second draw loan, but it may affect the timing of a second draw funding IFR 3 restates the expanded list of forgivable expenses adopted in the Economic Aid Act and explains that the broader list can also be applied to prior First Draw PPP Loans, but only if the SBA.

The Consolidated First Draw PPP IFR recaps the PPP program and provides some clarification around certain issues. The PPP Second Draw Loans IFR sets forth the key differences applicable to PPP2 loans and explains the loan terms, eligibility requirements, and application process for PPP2 loans (IFR PPP Amended by Economic Aid Act and IFR PPP Second Draw Loans) First draw customers , please see How to Apply on Summit 's PPP website and the SBA website for common quesons and answers. Summit 's criteria for a second draw PPP loan are as follows: 1. A completed forgiveness applicaon has been received and confirmed b y Summit Additionally, under the Consolidated First Draw PPP IFR and prior guidance, the following industry-specific entities are also eligible for First Draw and Second Draw PPP Loans: certain hospitals.

First Draw of 2020

The first interim final rule (IFR) is intended to cover new first-draw PPP loans authorized by the Consolidated Appropriations Act, 2021 (CAA) as well as the forgiveness applications of existing PPP loans for which the forgiveness proceeds have not yet been remitted. The second IFR applies to second-draw PPP loans authorized by the CAA. Per the SBA's Jan. 14, 2021, Interim Final Ruling (IFR) Protection Program (PPP) Second Draw Loans, if a first draw PPP loan has an unresolved issue, which may be due to hold codes or compliance. The first of the interim final rules (IFR) promulgated under the Economic Aid Act revises the PPP rules to match the Economic Aid Act, sets forth updated rules for borrowers obtaining PPP loans for the first time, known as First Draw Loans, and consolidates and restates the over 20 previously approved IFRs governing the PPP

Borrowers of First Draw PPP loans can use 2019 or 2020 to calculate their maximum loan amount. Section 1102 of the CARES Act states that borrowers are to calculate their maximum loan amount by using payroll costs incurred during the 1-year period before the date on which the loan is made. For PPP loans made in 2020, most borrowers used. also included. (PPP First Draw IFR, p. 44) • Similar to the First Draw PPP, the borrower must not include any compensation over $100,000 (on a prorated basis) for any individuals when calculating payroll costs. (p. 27) • Seasonal businesses can use any 12-week period between 2/15/19 and 2/15/20 to calculate payroll costs Read the IFR. SBA Adjusts PPP Payroll Calculation For Form 1040, Schedule C Filers Revisions to Loan Amount Calculation and Eligibility - First and Second Draw PPP Loans. The IFR released on 3/3/2021 allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income Consolidated IFR for First Draw PPP Loans. The current PPP loan rules resulted from 25 IFRs issued by the SBA between April 2 and June 25, 2020. The SBA has now consolidated, with some changes, 19 of these IFRs into a single IFR. 1 The changes made by the SBA in restating these rules include: New Categories of Forgivable Costs: The Economic Aid. The Second Draw PPP IFR includes further rules on the calculation of gross receipts for borrowers who have engaged in an acquisition or disposition during 2019 or 2020, in an attempt to create an.

Both First Draw and Second Draw PPP Loans Are Now

Federal Register :: Business Loan Program Temporary

Additionally, the assumption is that at least 60% of the First Draw funds are used on payroll, but this isn't stated in the IFR. On the loan application for Second Draw PPP Loans, the application is asking for a certification of loan necessity due to economic uncertainty IFR on PPP Second Draw Loans. This IFR discusses the eligibility requirements, loan terms and application process for those borrowers who have received a PPP loan during the first round in 2020 and meet the requirements to receive a second PPP loan draw. The requirements to receive a second draw PPP loan are narrower than the first PPP loan

New PPP guidance issued by SBA, Treasury - Journal of

How to Calculate First Draw PPP Loan Amount

Treasury, SBA Issue PPP Guidance on First and Second Draw

This IFR is also meant to be used alongside other recently released guidance in the previous few days from the SBA, including frequently asked questions (FAQs) on first-draw PPP loans, second-draw PPP loans, a procedural notice on loan forgiveness topics and another procedural notice on PPP excess loan amount errors The SBA is implementing this change with respect to PPP loans approved after the effective date of the IFR. Therefore, borrowers with first or second draw loans previously approved by the SBA cannot be increased for the new calculation outlined below FAQ#62 makes it clear a borrower who received partial forgiveness of its First Draw PPP Loan, IS eligible for a Second Draw PPP Loan as long as the borrower used the full amount of its First Draw PPP Loan only for eligible expenses outlined in subsection B.11.a.i.-xi of the consolidated interim final rule implementing updates to the PPP SBA issued an interim final rule (IFR) to implement changes made to the Paycheck Protection Program (PPP) by the American Rescue Plan Act, enacted on March 11. Changes include: Shuttered Venue Operator (SVO), Page 6: If a PPP borrower receives a First Draw or Second Draw PPP Loan after December 27, 2020, the amount of any subsequently-approved SVO grant will be reduced by the amount of the. Two distinct Paycheck Protection Programs (PPP) opened on January 19, 2021. First-time borrowers (including newly eligible borrowers) can once again apply under the first-round program. These applications can be for a completely new first draw loan or to right size (discussed below) their original loan

SBA PPP Guidance on First and Second Draw PPP Loan

The changes apply to both First Draw PPP Loans and Second Draw PPP Loans. Link: PPP FAQs (3-3-21).pdf (sba.gov) As of March 3, 2021 The FAQs have been updated to reflect changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted on December 27, 2020 First draw PPP loans should not be included in 2020 gross receipts. Third interim final rule clarifications. In an IFR released on Jan. 19, the SBA and Treasury made a few notable changes and clarifications to the PPP that apply regardless of which type of forgiveness application a business uses. Here are the key points First-draw Schedule C gross income form Second-draw Schedule C gross income form Additionally, the IFR states that first-draw PPP loans with $150,000 or less in gross income on a Schedule C will be eligible for the economic necessity safe harbor, but loans above will not and could receive additional SBA review If a farmer or rancher received a first-draw PPP loan and would be eligible for a higher maximum loan amount based on the formula described in subsection B.4.d. of the SBA consolidated IFR, the lender of record may electronically submit a request through E-Tran to increase the loan amount, again subject to the loan maximum and documentation.

First Draw Documentation Guide. Second Draw Borrower Application- updated 2.19.21. Second Draw Documentation Guide. Please remember that you must have either already submitted a forgiveness application for the first draw of PPP funds or turn in a forgiveness form with your Second Draw application before being able to apply for a Second Draw On March 12, 2021 and April 6, 2021, the Frequently Asked Questions (FAQs) were updated. On March 18, 2021, the SBA posted an Interim Final Rule on Paycheck Protection Program as Amended by American Rescue Plan Act (Eligibility IFR) and posted updated borrower and lender application forms for First Draw and Second Draw PPP Loans While many of the forgiveness rules released with the second wave of Paycheck Protection Program (PPP) loans are the same as they were for the first round, there are some key differences to be aware of when planning spending and forgiveness for your first- or second-draw loan.. In this video, CohnReznick PPP specialists Stephanie O'Rourk and Jeff Bobrosky break down what's new and what. The rules applicable to loan forgiveness for First Draw Loans and Second Draw Loans are similar; provided, that the covered period for a Second Draw Loan is the borrower's choice of (i) 8 weeks or (ii) 24 weeks. For First Draw Loans, only borrowers receiving PPP loans prior to June 5, 2020, could choose an 8-week or a 24-week covered period General Requirements: Similar to First Draw PPPs, most borrowers will compute the maximum loan amount using 2.5x the average monthly payroll costs (maximum loan of $2 million under Second Draw PPP). Borrowers are given the option to use payroll costs from calendar 2019, calendar 2020 or the twelve-month period prior to the disbursement of the loan

SBA Posts Interim Final Rules Implementing Changes to

The EAA established the Second Draw PPP Loans Program (PPP2). On January 6, 2021, the Treasury Department released two Interim Final Rules (IFR) providing further clarification on the program. Loan terms and many other details are consistent with the first round of PPP loans. The following is a summary of the EAA provisions for the program Second Draw PPP loans will be available through March 31, 2021. Eligibility Requirements for Borrowers to Receive a Second Draw PPP Loan. Borrowers who took out First Draw PPP loans in 2020 can apply for one additional loan of up to $2 million if they meet the following requirements Borrowers who received a Second Draw Loan of more than $150,000 must submit the Forgiveness Application for the First Draw Loan before or at the same time as the Forgiveness Application for the Second Draw Loan. This applies even if the calculated forgiveness amount of the First Draw Loan is zero. I received a PPP loan of $50,000

The new IFR allows a Schedule C filer who has: Yet to be approved for a PPP first- or second-draw loan in the current, $284.5 billion phase of the program to elect to calculate the owner compensation share of its payroll costs based on either net profit (as reported on line 31 of Schedule C) or gross income (as reported on line 7 of Schedule C) Highlights of the new IFR include: For second draw PPP loans in excess of $150,000, the borrower must submit the loan forgiveness application for the first draw loan before or simultaneously with the loan forgiveness application for the second draw loan, even if the calculated amount of forgiveness on the first draw loan is zero

Guidance issued for PPP first-draw loan increases

In addition, borrowers that received a PPP loan of more than $50,000 and borrowers of $50,000 or less that together with their affiliates received First Draw PPP Loans totaling $2 million or more or Second Draw PPP Loans totaling $2 million or more that were required to adjust their Requested Loan Forgiveness Amount due to statutory. Many of the same terms, conditions, and processes of first-draw PPP loans apply for second-draw PPP loans; still, there are a number of key differences and exceptions, which are specified in a second IFR, Paycheck Protection Program (PPP) Second-Draw Loans. Read on for an overview of key ones to know, and see the IFR for complete information Certain existing PPP borrowers can request to modify their first-draw PPP loan amount. Certain existing PPP borrowers are now eligible to apply for a second-draw PPP loan. In general, borrowers are eligible for a second-draw PPP loan of up to $2 million, provided they have: 300 or fewer employees

CALT Brief: PPP in Detail

SBA Begins Rolling Out Guidance for New PPP and PPP Second

The Restated First Draw IFR also reiterated that hedge funds and private equity firms are ineligible to receive a PPP loan because they are primarily engaged in investment or speculation. The EAA requires the SBA to issue a simplified single-page forgiveness application for PPP Loans of $150,000 or less As further clarified in the IFR released on Jan. 8, certain existing PPP borrowers that have spent all (including any additional loan funds that may be obtained, as noted above) prior PPP First Draw loan funds (prior to receiving a Second Draw) and meet the revised eligibility criteria may soon apply for a Second Draw PPP loan

Paycheck Protection Program Round Two - What You Need to

The SBA has detailed rules for gross receipts for affiliates. See Part IV(c)(2)(ii) on page 3718 of the Second Draw Loan IFR for these details. Note: If you got a First Draw PPP loan and received loan forgiveness, do not include the forgiven amount in your gross receipts The IFR also clarifies that an otherwise eligible borrower is not disqualified from receiving a Second Draw PPP Loan because it received forgiveness on a First Draw PPP Loan. The somewhat unclear phrasing of the bill combined with the term Second Draw left some practitioners and bankers wondering if receiving forgiveness on the first loan. The IFR on the PPP Second Draw Loans emphasizes that second draw loans are generally subject to the same terms and conditions of the PPP (including the Consolidated First Draw PPP Interim Final. For more information, please review page 43 of SBA's PPP as amended by the Economic Aid Act IFR (Consolidated First Draw PPP IFR). Are borrowers applying for a loan under $150,000 required to submit documentation adequate to establish that the applicant experienced a revenue reduction of 25% or greater in 2020 relative to 2019

Economic Aid Act: 10 Things to Know about Second Draw PPP

On February 24th 2021 the Biden Administration published IFR 2021-010/RIN 3245-AH67, ostensibly to help the smallest businesses' fast-track their Second Draw PPP loans (Read the Full Text of the IFR Here).Under this new law, businesses with 20 or fewer employees had a two week window (February 24th to March 9th) to apply for a Second Draw PPP Loan, and have their applications considered. PPP Loans -Second Draw, and Other CAA Considerations Page 2 •First Draw PPP (PPP1) originated as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law March 27, 2020. •Original Funding of $349 billion •Amended and expanded by the Paycheck Protection Program and Health Care Enhancement Act on April 24. SBA PPP IFR Loan Amount Calculation and Eligibility - 03/03/21 Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide - 01/19/21 SBA PPP How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide - By Business Typ The First Draw PPP is essentially the first round of PPP loans, most of which were made in Spring of 2020. Second Draw PPP was authorized on 12/27/2020 with updated rules and regulations. Many facets of Second Draw PPP are similar to the first draw, with a few updates (many highlighted below). DETERMINING ELIGIBLITY FOR SECOND DRAW PPP The IFR on the PPP Second Draw Loans emphasizes that second draw loans are generally subject to the same terms and conditions of the PPP and provides the following guidance: Eligibility Requirements Borrowers must 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.