Business Loans

First And Second Draw In the Same Round? It’s Possible

Apr 29, 2021 • 3 min read
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      UPDATE: The PPP loan application period ended May 31, 2021. Learn about financing options available for small businesses today at

      The Paycheck Protection Program (PPP) is scheduled to end on May 31, 2021 (or when funds are exhausted, whichever comes first). Given recent strides toward reopening and returning to a pre-pandemic normal, this may be the last we see of the unprecedented potentially-forgivable loan program. 

      2021 guidance from the SBA expanded eligibility for PPP, allowing for a Second Draw for qualifying borrowers. A few of the primary qualifications include: having used all your First Draw PPP loan funds on eligible uses and experiencing a revenue reduction of 25%+ due to the pandemic. 

      What Is a Second Draw?

      A Second Draw allows eligible borrowers to access additional funds via the potentially-forgivable loan program. Most eligible Second Draw borrowers can qualify for another 2.5 times worth their monthly payroll costs through the loan program. Businesses with a NAICS code ending in “72” may qualify for up to 3.5 times their monthly payroll costs on the Second Draw. 

      Applying for a First and Second Draw in the Same Round

      If you received your PPP First Draw in 2021, you may be eligible to apply for a Second Draw before the program expires on May 31. In order to qualify, you will need to meet the following criteria in addition to the existing Second Draw criteria:

      • Application for Second Draw must be at least 8 weeks after receiving the First Draw funds. The SBA prohibits the covered periods for First and Second Draws from overlapping.
      • You must use all funds on eligible uses prior to receiving a Second Draw. (You will be asked to certify that this has been done.)
      • You have used the funds on eligible expenses. (You will be asked to certify that this is true.)

      How to Apply for a Second Draw Through Lendio

      If you received your First Draw this round and would like to apply for a Second Draw, here’s how you can apply through Lendio:

      1. Log in to the application.
      2. Indicate that you are applying for a “Second Draw” when prompted.
      3. Answer the additional questions to certify revenue reduction, that you meet Second Draw requirements, and that ownership has remained unchanged since the First Draw. 

      If you do not alter the loan amount from the First Draw, we may be able to expedite your Second Draw application.

      Ready? Don’t waste time. Apply now for your Second Draw.

      About the author

      Lendio's team of experts is here to help you with every nook and cranny of your business. We'll make sure you have the best advice for financing, operations, management, hiring, and much more.

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