Paycheck Protection Program (PPP) Round 2 FAQs

Texas Trust Credit Union will be participating in the 2nd round of the Paycheck Protection Program (PPP) approved and signed on December 27, 2020. Once the Small Business Administration (SBA) has issued guidance for the loan, we will then set up our online portal for applications. Once the portal is ready, we will update this message. All applications must be submitted via the web portal. Here are your most frequently asked questions:

  1. How do I apply?
    • Watch for links to application First Draw and Second Draw on our website. If you received funds in the first or second round last year you will receive an email once the links are active.
  2. I did not receive funds for the first round of PPP. Can I apply this time?
    • Eligible applicants that did not receive a PPP loan prior to August 8, 2020, will now have the ability to apply for a First time PPP Loan on or before March 31, 2021.
  3. Who can apply for first time PPP loans?
    • Business entities (e.g., partnerships, corporations, LLCs)
    • Sole proprietors, independent contractors, self-employed individuals501(c)(3)
    • 501(c)(6)
    • 501(c)(19) Veterans organization
    • Tribal business, and
    • Housing cooperatives, destination marketing organizations, and eligible news organizations.
  4. Must comply with size standards, eligibility criteria, and certain limitations.

  5. I understand that there are other eligible expenses that have been added into this round. What are they?
    • Covered eligible expenses expanded and now includes the following: payroll costs, rent, mortgage interest, utilities, operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
  6. What has changed for those who applied and received funds in the first round of PPP funding?
    • Eligible borrowers that previously received a PPP First Draw Loan may apply for a PPP Second Draw Loan of up to $2 million with the same general loan terms as their PPP First Draw Loan.
    • For most borrowers, the maximum loan amount of a PPP Second Draw Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.
    • For borrowers in the Accommodation and Food Services sector (NAICS 72), the maximum loan amount for a PPP Second Draw Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
    • PPP Second Draw Loan applicants must use the new SBA Form 2483-SD Borrower Application.
  7. Who can apply for additional PPP funds this time around?
    • A borrower is generally eligible for a PPP Second Draw Loan if the borrower:
    o Was eligible for and previously received a PPP First Draw Loan;
    o Has or will use the full loan amount only for eligible expenses before the PPP Second Draw Loan is disbursed;
    o Has no more than 300 employees; and
    o Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  8. For example, a borrower with gross receipts of $50,000 in the second quarter of 2019 and gross receipts of $30,000 in the second quarter of 2020 has experienced a revenue reduction of 40 percent between the quarters, and is therefore eligible for a Second Draw PPP loan (assuming all other eligibility criteria are met).<br/>

  9. What will change for forgiveness in the Second Draw of PPP funding?
    • Borrower now has the option to select a covered period during which they can use PPP loan proceeds anytime between 8 and 24 weeks after disbursement.
    • SBA will no longer deduct EIDL advances from forgiveness payment.
    • If lender has already received a forgiveness payment net of an EIDL Advance, SBA will provide a reconciliation payment to lender to be applied to the outstanding loan balance.
    • Under development: simplified forgiveness application for loans $150K and under.

Current as of 1/25/21 –Visit www.sba.gov/ppp for the most up-to-date information.