PPP Second Draw Loans
The newly enacted stimulus bill including the Economic Aid Act will allow for another round of funding for the SBA Paycheck Protection Program (PPP).
Note: Currently we are ONLY excepting Second Draw applications from customers who obtained their First Draw SBA PPP Loan through Evergreen Federal Bank.
If you are interested in applying for a Second Draw on a SBA PPP Loan that you obtained through Evergreen Federal Bank, visit the link below to read important guidance issued by the SBA.
It is important that you have had a chance to read the guidance and determine if you qualify and the program is a good fit for your business.
Second Draw Criteria:
- For small businesses that employ 300 or fewer employees;
- For small businesses that sustained at least a 25 percent drop in revenue in any quarter of 2020 when compared to the same quarter in 2019;
- The small business must use or have used the full amount of their first PPP loan;
- Maximum loan amount is 2.5 times the average monthly payroll based on the 2019 calendar year or a one year look back, capped at $2 million. NAICS 72 Businesses (Accommodations and Food Services) can receive 3.5 times average monthly payroll, capped at $2 million; and
- The Covered Period, in which to use the funds, is selected by the small business and must be at least 8 weeks but not more than 24 weeks after the date of loan origination.
NOTE: This is based on our initial understanding of the new law. Treasury and the SBA will clarify provisions with guidance and reserve the right to make changes.
Applying through Evergreen:
- NOTE: Evergreen will cap Second Draw PPP Loan requests to $1,000,000 per business
- Evergreen may choose to limit the amount of applications we are able to receive in order to expedite submissions to the SBA.
- Evergreen will rely on certification made by the borrower. We encourage you to seek advice from your CPA or financial advisor if you are considering a SBA PPP loan.
What documents are Required?
- Applicants will have to verify the 25 percent drop in revenue requirements. If you are requesting a Second Draw over $150,000, you must submit proof of the reduction along with your PPP Second Draw Borrower Application. For applicants who request a Second Draw of less than $150,000, documentation can be provided at the time you submit your Second Draw Forgiveness Application.
To download the SBA PPP Second Draw Application, clink the link below:
Borrowers are may be required to report Certain Controlling Interests. Click the link below to check if this applies:
NOTE: The SBA has announced that it will take longer to receive approvals for this Second Round of Funding. Please expect longer wait times.
Once you have completed your application and collected supporting documents you can drop them off at any Evergreen Federal Bank location via the drive-thru or use our Secure Email Portal.
Click the button below for information regarding our Secure Email Portal.