Here for Support – Second Draw Loans

In late December 2020, Congress approved additional PPP funds, including second draw loans for borrowers who previously received a loan.  We are here to support you through the second draw application process. 

PPP second draw loans have the same general terms as the first draw; download the SBA Paycheck Protection Program Second Draw Loans overview to learn more about use of funds and eligibility.  Your business is generally eligible for a second draw loan if you:

  • Previously received a first draw PPP Loan and have - or will - use the full amount only for authorized uses;
  • Have no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable calendar quarters in 2019 and 2020

Unlike the 2020 program, adequate funds have been allocated by Congress to fund second draw loans; therefore we encourage you to take your time in reviewing the materials and completing the second draw application.  Second draw applications will be accepted by SBA through Wednesday, March 31, 2021.

Once your second draw loan form is complete, please submit it and all supporting documents to MemberBusinessLoans@credithuman.com, and one of our employees dedicated to PPP second draw loans will contact you within one business day.

At this time, we are only accepting second draw PPP loan applications from those who previously received a PPP loan from Credit Human, in order to focus our efforts on supporting members through the second draw and loan forgiveness application process.

 


Preparing for First Draw Loan Forgiveness

If you have not yet applied for forgiveness for your first draw PPP loan, you are still eligible to apply for a second draw loan as long as all the funds from the first loan have been used.  Based on the SBA requirements* we have outlined what you need to know for loan forgiveness for your first draw. We have also developed tools to help empower you throughout this process. You can download the SBA’s PPP Loan Forgiveness FAQ for guidance on how to begin the forgiveness application process.

We are also here for your employees who may be under financial stress resulting from the pandemic. Credit Human offers simple tools that help them plan, save, spend and borrow responsibly. We engage them in sensible conversations designed to help improve their financial health. Talk to us about how we can work to support your employees in freeing themselves of financial stress.

 

First Draw Loan Forgiveness Requirements
There are requirements you will have to keep in mind while managing your loan proceeds during the covered period in order to be eligible for loan forgiveness.

  • Use at least 60% of loan proceeds for payroll costs
  • Use up to 40% of loan proceeds for non-payroll costs such as non-mortgage interest payments, rent or utilities
  • Maintain the same average number of full-time employees
  • Maintain salaries within 25% for any employee that made less than $100k annualized in 2019
  • Restore full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020 by December 31, 2020

If proceeds are not used as listed above, a reduction in the forgiveness will be required. Note, the above requirements are a brief outline, for a more in-depth explanation of loan forgiveness please review the Paycheck Protection Program Loan Forgiveness Guidelines.
 

SBA PPP First Draw Loan Forgiveness Application
You should have received from us a partially pre-filled forgiveness application (standard, 3508EZ or 3508S) containing some information for your business. You can submit the forgiveness application anytime once you’ve depleted the first draw PPP loan funds and completed the forgiveness application we sent you. To help expedite the loan forgiveness process, we recommend you use the partially pre-filled version we sent you to complete your forgiveness application, and email it to us along with the requested supporting documents at MemberBusinessLoans@credithuman.com.
 


Resources and Tools

First Draw Loan Forgiveness Guidelines

This guide provides an overview of the Paycheck Protection Program and helps you prepare for first draw loan forgiveness. It will define the difference between Covered and Alternative Covered periods, requirements for loan forgiveness, acceptable payroll and non-payroll costs and all documentation required for loan forgiveness. 

View Guidelines
First Draw Expense Tracking Tool
This tool will enable you to track payroll costs, other allowable costs and employee retention by week for up to 24 weeks after the disbursement of PPP loan proceeds.

 

Download in MS Excel
Open in Google Sheets
 

 

*Requirements as of 01/11/2021 and updated 01/2021. All SBA Paycheck Protection Program rules are subject to change and may impact the loan forgiveness guidelines provided to borrowers. For the most current PPP loan and forgiveness information, please visit www.sba.gov/ppp.

PPP Loan Forgiveness Guidelines


Provides an in-depth explanation of the PPP Loan Forgiveness Guidelines.


View Guidelines

Expense Tracking Tool

Enables you to track payroll costs, other allowable costs and employee retention by week.