Congress has allocated additional funds for another round of the Paycheck Protection Program (PPP). There are two types of PPP loans available in this round.
The First Draw loans are for eligible borrowers who did NOT take advantage of a PPP loan in 2020. Please reach out to your Cornerstone Banker for the application and eligibility information. (Note: If you have multiple businesses and only obtained a PPP loan for one, you may potentially qualify for the first draw loans for your other entities.)
The Second Draw loans are for eligible borrowers who have already received a PPP loan and would be getting a second PPP loan. Please let your Cornerstone Banker know if you are considering a second PPP loan. A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses,
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
To apply for a Second Draw PPP loan, please complete the “Second Draw Borrower Application” below and return to your Cornerstone Banker along with the revenue reduction evidence and payroll information in order to get the process started.
- Form 2483-SD – Second Draw Borrower Application (Released 1/8/21)
- Average monthly payroll documentation – If you plan to utilize your average monthly payroll from 2019, we have already received this information with the first PPP loan and therefore no additional information is required. If you plan to calculate your Second Draw PPP loan based on your 2020 average monthly payroll, please send supporting documentation.
- Revenue reduction evidence – As stated above, to qualify for a Second Draw PPP loan you need to have experienced a 25% reduction in revenue in 2020 from the corresponding quarter in 2019. Please send evidence of this reduction.
Please contact your Cornerstone Banker for additional information.