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Round 2 PPP Loans Explained: Rules, Requirements, & Where To Apply

    Shelbi Wescott
  • 14 comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Shelbi Wescott

Shelbi Wescott

Managing Editor at Merchant Maverick
Managing Editor Shelbi Wescott has been researching and comparing small business payroll and accounting software since 2019. An accomplished author in both the science-fiction and mystery genres, she received an Honorable Mention for Best YA Mystery from the Library Journal for her novel After Life. Shelbi has a BA in English Literature and a Masters in Teaching from Lewis and Clark College.
Shelbi Wescott
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14 Comments

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    k. Moore

    I did not apply for 1st phase of PPP loan till this year when the portal reopened. I’m currently attempting to apply for the second phase and is not allowing me to do so, what could be the problem with processing the 2nd phase loan application? Or am I Not allowed to apply for both loans this physical year?

      Jessica Dinsmore

      Hi K,
      It looks like there isn’t a strict requirement that a business must have used all its first draw PPP loan funds to get a second loan, but there is currently a temporary requirement in place (until March 9th) that an entity must have fewer than 20 employees to get a second PPP loan. From March 10th to the 31st, second draw PPP loans will be available again to all eligible businesses. Without knowing more about your situation it is difficult to say if that pertains to you or not. If not, I’d suggest getting in touch with the SBA to try to get clarification.

        Kelly

        My employer wants me to look in to applying for the 2nd round of PPP loans, I am new to the company, and her taxes have not been filed since 2018. Does she need to have those done in order to apply?

          Jessica Dinsmore

          Hi Kelly,
          The SBA is using tax information from either 2018 or 2019 to calculate the PPP loan amount. While we couldn’t find specific data that says you can’t apply, we think you will run into trouble proving 2020 losses without the data to back it up. The best bet would be to call a lender and see what information you will need if it can be done with back-due taxes.

            Mary Haymans

            I applied two PPP application at my local Bank. Went back several time and was told we are in a cubicle and just wait. We have yet to hear from the bank. Went to two another local Bank and they told me they wish I had gone to the first because they could of help me. I found another bank that still has the fund and was going to help me but want proof that I had not received funds yet. Well my local bank still hasn’t gotten back with me.
            Today this bank that still has funds said the only way they would accept the application is to move my business account to their bank. Which is a good 50 miles from where my business is located. Is this a rule to apply for the PPP? I do understand the monies will have to be deposited into their bank and I would have open an account to write check from. What I don’t understand is to be denied because I live 50 miles from them.
            How can I find out if there is any other bank in my area that still has some funds available. I was referred to this bank from another bank that whished they could of helped me.
            Should I mention to this bank that this is not a SBA rule to apply for the PPPL?

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Mary,

              I’d suggest you just ride the wave. I wouldn’t recommend opening a bank account 50 miles away. You’ve already got applications being processed by your local bank, so just hang tight and try to be patient. You can also try calling Tier 2 for an update. But be persistent if you aren’t getting the information you are requesting. Be a squeaky wheel at your bank too! They work for you! Good luck.

                This comment refers to an earlier version of this post and may be outdated.

                benjamin w shell

                how to check if you qualified for the loan

                  This comment refers to an earlier version of this post and may be outdated.

                  Jessica Dinsmore

                  Hi Benjamin,

                  We cover Who Qualifies For A PPP Loan in this post. If you are wanting to check your status you can find out how to do that in our How To Check The Status Of Your PPP Loan Application post.

                    This comment refers to an earlier version of this post and may be outdated.

                    Shirley Fajardo

                    Hi Chris,

                    Majority of banks are accepting application for customers with a Business Account only. I am a self employee with a regular checking account, I have been calling and checking all the banks near me and no one have been able to help me. Any suggestions?

                      This comment refers to an earlier version of this post and may be outdated.

                      Jessica Dinsmore

                      Hi Shirley,

                      You can apply for a self-employment loan through the Paycheck Protection Program. But I’d suggest jumping on it! Best of luck to you!

                        This comment refers to an earlier version of this post and may be outdated.

                        Mari Posner

                        Our bank is Wells Fargo that took only our name and email on Sun 4/5. I heard WF already cap their max $10B on Saturday. Since we haven’t filled out application yet w/WF, can I still apply through fundra or lendio?

                          This comment refers to an earlier version of this post and may be outdated.

                          Jessica Dinsmore

                          Hi Mari!

                          You can definitely apply for a loan elsewhere. Best of luck to you!

                            This comment refers to an earlier version of this post and may be outdated.

                            Chris

                            Hi,
                            Is it OK to apply at more than one bank?
                            I realize you can only accept one loan per EIN, but I am nervous about some banks and I don’t know how to choose the one to apply to. I have picked 3 somewhat local banks and would like to apply to them and go with the first one that approves me. We are in dire straits to keep employees on, but customers are not paying.

                              This comment refers to an earlier version of this post and may be outdated.

                              Jessica Dinsmore

                              Hi Chris,

                              I’d suggest using the SBA Preferred Lending Partners link in the article to find eligible lenders near you, or go with any of the three lending vendors (aka matchmakers) we suggest in the article that have Paycheck Protection Loans available now. If the need is great and you want to cast a wide net, go with a matchmaker. We wish you all the best during this trying time!

                                This comment refers to an earlier version of this post and may be outdated.

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