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Second Draw Paycheck Protection Program (PPP)

Eligible businesses that received a PPP loan previously may be able to obtain a Second Draw PPP.


Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 

Targeted Eligibility

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will use 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.

Maximum Loan Amount and Increased Assistance for Accommodation and Food Services Businesses

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Loan Terms

  • Loan amount is equal to 2.5x average monthly payroll for 2019 or 2020 (3.5x for any entity with a NAICS code starting with 72 – Accommodation and Food Services).
  • 1% interest rate.
  • Loans issued after June 5, 2020 have a maturity of five years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
  • No collateral requirements and no personal guarantee.

Full Forgiveness Terms

Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • the loan proceeds are spent on payroll costs and other eligible expenses; and
  • at least 60 percent of the proceeds are spent on payroll costs.

IRS Form 1040, Schedule C

Effective March 3, 2021, the SBA allows individuals who file an IRS Form 1040, Schedule C, the option to calculate their maximum loan amount using net profit or gross income (a borrower whose PPP loan has already been approved cannot increase its loan amount based on the new calculation method).

When and How to Apply

As of May 4, 2021, the SBA has announced that all authorized funds for the Paycheck Protection Program have been exhausted. At this time, we are no longer accepting applications.

For more PPP loan information visit

Please contact your St. Mary’s Bank Commercial Banking representative at, or call (603) 629-1692 with questions.