Can I apply for a second PPP loan if I took a first PPP loan in 2021?
The Economic Aid Act allows for a Second Draw PPP loan for those borrowers who have received a First Draw PPP loan and have used all the funding by the time they receive their second loan. In March 2021, the SBA made this option available for the first time to those borrowers who received a First Draw loan in 2021.
The Economic Aid Act states that a Second Draw PPP Loan may only be made to an eligible borrower that (i) has received a First Draw PPP Loan, and (ii) has used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.
This means your business must use all PPP funds from your First Draw loan on eligible expenses before you can take funding from a Second Draw loan.