{"id":4366,"date":"2021-01-25T12:00:00","date_gmt":"2021-01-25T17:00:00","guid":{"rendered":"https:\/\/teachingmillionaires.com\/?p=4366"},"modified":"2021-02-23T10:52:43","modified_gmt":"2021-02-23T15:52:43","slug":"where-can-i-apply-for-second-round-of-ppp","status":"publish","type":"post","link":"https:\/\/teachingmillionaires.com\/newstag\/where-can-i-apply-for-second-round-of-ppp\/","title":{"rendered":"Where Can I Apply for Second Round of PPP?"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"PPP Round 2 for SELF EMPLOYED\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/LLvjRzufg2g?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Here&#8217;s an overview of where you can apply for second round of PPP, if you&#8217;re self employed &#8211; along with a breakdown of how to apply for PPP 2.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Is There a Second Round of PPP Loans?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>The Paycheck Protection Program is back for another round.&nbsp; Also known as PPP, this second round is available both to people who already got the first round and those who didn&#8217;t get the first round.&nbsp; <\/p>\n\n\n\n<p>To be clear, you can apply if this is your first time, and this is called a First Draw PPP Loan.  You can also apply and get a second round of funding in addition to your first PPP loan, and this is called a Second Draw PPP Loan.<\/p>\n\n\n\n<p>Remember, the PPP is a forgivable loan for business owners impacted by COVID-19. &nbsp;If you use it for approved payroll and business expenses, it will be forgiven 100%.&nbsp; You won\u2019t have to pay back any money or interest once the SBA approves your forgiveness application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Qualifies for Second PPP?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>If you earned self-employed income and were in business before February 15, 2020, then you might qualify for a PPP loan.&nbsp; I go into detail all about <a href=\"https:\/\/teachingmillionaires.com\/how-to-pay-yourself-ppp-money\/\">the basics of PPP loans<\/a> and <a href=\"https:\/\/teachingmillionaires.com\/how-to-pay-yourself-ppp-loan-self-employed\/\">how to pay yourself PPP money<\/a>, so be sure to review those posts to help you understand the details.&nbsp;<\/p>\n\n\n\n<p>You do not need to have an LLC.&nbsp; Rather, this is available to sole proprietorships, independent contractors, gig workers, etc.&nbsp; If you have a partnership, S-Corp, C-Corp, or LLC, you can apply too.<\/p>\n\n\n\n<p>You need documentation to prove payroll and expenses.&nbsp; The easiest documentation to use is your 2019 tax return.  Second Draw PPP loans require additional documentation to prove a 25% revenue reduction when comparing your 2020 income to 2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can I Apply for PPP Twice?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>The maximum amount a self-employed person can get for a PPP loan is $20,833. &nbsp;This amount is calculated using average monthly payroll determined by a specific SBA calculation.&nbsp; I made this <a href=\"https:\/\/teachingmillionaires.com\/recommends\/correct-ppp-loan-amount-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">free spreadsheet to help you determine your \u201cCorrect PPP Loan Amount\u201d<\/a> so feel free to sign up for a copy.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"916\" height=\"578\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/01\/PPP-Calculator.png\" alt=\"Second Round of PPP\" class=\"wp-image-4378\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/PPP-Calculator.png 916w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/PPP-Calculator-300x189.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/PPP-Calculator-768x485.png 768w\" sizes=\"(max-width: 916px) 100vw, 916px\" \/><figcaption>Second Round of PPP<\/figcaption><\/figure><\/div>\n\n\n\n<p>If approved, the money can be used as owner&#8217;s compensation for those who file a Schedule C.&nbsp; Essentially, this means you get to pay yourself 100% of the loan when you choose the 24-week covered period.&nbsp; There\u2019s also a list of <a href=\"https:\/\/youtu.be\/kQCSmTKTMoo\" target=\"_blank\" rel=\"noreferrer noopener\">approved business expenses that I detail in this video<\/a>.<\/p>\n\n\n\n<p>A few things to keep in mind. &nbsp;If you made more than $100,000 on Line 31 of your Schedule C, then your PPP loan amount is capped using that $100,000 figure.&nbsp; This means the maximum PPP loan amount a self-employed individual with no employees can get is $20,833.<\/p>\n\n\n\n<p>You are not eligible for a PPP loan if your Schedule C shows a loss instead of a profit.<\/p>\n\n\n\n<p>If you got the correct amount for the first round, then you can expect a similar amount for the second round.&nbsp; For someone applying for the first draw, you can try to get a second draw once you use all the funds from the first draw.&nbsp; However, the covered periods for a First Draw PPP and a Second Draw PPP Loan cannot overlap. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.sba.gov\/sites\/default\/files\/2021-01\/PPP%20--%20IFR%20--%20Loan%20Forgiveness%20Requirements%20and%20Loan%20Review%20Procedures%20%281.19.2021%29-508.pdf\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"1024\" height=\"522\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/01\/SBA-FIR-1024x522.png\" alt=\"\" class=\"wp-image-4379\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SBA-FIR-1024x522.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SBA-FIR-300x153.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SBA-FIR-768x392.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SBA-FIR.jpg 1106w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption><em>PPP Interim Final Rule &#8211; effective 1\/19\/21<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>There are eligibility requirements to keep in mind for both the First Draw and Second Draw. &nbsp;For example, getting a second PPP loan requires you show a 25% loss in 2020 compared to 2019. &nbsp;However, the SBA does not require this documentation when you apply. &nbsp;Instead, they say you&#8217;re going to need it when you apply for forgiveness.<\/p>\n\n\n\n<p>While lenders aren&#8217;t required to collect this documentation when you apply for the Second Draw PPP, some are requesting it to be proactive.  It&#8217;s okay to give them your &#8220;good faith&#8221; records such as tax forms or, if relevant tax forms are not available, a copy of your quarterly income statements or bank statements.<\/p>\n\n\n\n<p>One interesting item is that you can use 2020 tax returns or 2019 tax returns to calculate your average monthly payroll.&nbsp; This means that if you earned more in 2020 but can still show that 25% loss in one quarter, then you can use 2020 to calculate your second PPP loan amount.  Basically, use the year that in your favor for the Second Draw PPP Loan.<\/p>\n\n\n\n<p>Those considering a First Draw PPP Loan will need their 2019 Schedule C when applying.  I also include a list of other documents to gather down below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can You Get 2<sup>nd<\/sup> PPP Loan with a Different Lender?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>You do NOT need to apply for this second round with the same lender. &nbsp;Many felt frustrated or dissatisfied with lenders who were unable to answer questions about the loan and forgiveness process.<\/p>\n\n\n\n<p>I heard from countless people who were upset that the big banks prioritized big businesses.&nbsp; It was also common for lenders to require you had a preexisting business banking relationship with them to apply for a PPP loan.<\/p>\n\n\n\n<p>This second time around you can apply with a different lender \u2026 the decision is completely up to you.&nbsp; Also, it\u2019s free to apply for a PPP loan, so ignore anyone suggesting otherwise.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"977\" height=\"643\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/01\/Womply-Landing-Page-1.jpg\" alt=\"\" class=\"wp-image-4380\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/Womply-Landing-Page-1.jpg 977w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/Womply-Landing-Page-1-300x197.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/Womply-Landing-Page-1-768x505.png 768w\" sizes=\"(max-width: 977px) 100vw, 977px\" \/><\/a><figcaption><em><a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Apply for PPP Loan Here<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>I partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Womply to help as many people as possible apply for PPP loans<\/a>.&nbsp; They are a SBA-approved agent that can help you fast-track your PPP loan application.<\/p>\n\n\n\n<p>I did a <a href=\"https:\/\/youtu.be\/rEPTgqLKbgA\" target=\"_blank\" rel=\"noopener\">step by step video on how to apply<\/a> if this is your first time, so use that as a guide when applying.  <\/p>\n\n\n\n<p>My overview video on <a href=\"https:\/\/youtu.be\/LLvjRzufg2g\" target=\"_blank\" rel=\"noreferrer noopener\">applying for the Second Round PPP Loan can be found here<\/a>, and I have many more resources planned as soon as the SBA provides more guidance.<\/p>\n\n\n\n<p>I suggest gathering all the following, so you are prepared when applying for your PPP loan:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Driver\u2019s License\u2014copy of front and back<\/li><li>Void Check (image must show the check horizontally)<\/li><li><a href=\"https:\/\/www.naics.com\/search\/\" target=\"_blank\" rel=\"noreferrer noopener\">NAICS Code for your business type<\/a><\/li><li>February 2020 Bank Statement or other proof of business<\/li><li>1040 Schedule C from 2019 or 2020<\/li><\/ul>\n\n\n\n<p>It\u2019s also a very good idea to open a new bank account for the purpose of crystal-clear records and documentation.&nbsp; You can transfer the entire PPP deposit into this new account, then <a href=\"https:\/\/teachingmillionaires.com\/how-to-pay-yourself-ppp-loan-self-employed\/\">pay yourself the money<\/a>.&nbsp; This creates clean documentation and bank statements that will be used when you apply for forgiveness.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/sofi-bank-account\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"1024\" height=\"583\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/01\/SoFi-Bonus-1024x583.png\" alt=\"\" class=\"wp-image-4381\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SoFi-Bonus-1024x583.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SoFi-Bonus-300x171.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SoFi-Bonus-768x437.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/SoFi-Bonus.png 1345w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Many have muddy transactional records where personal and business money is co-mingled.&nbsp; This is not a good idea for your PPP loan.&nbsp; I used a <a href=\"https:\/\/teachingmillionaires.com\/recommends\/cit-bank\/\">high interest savings account with CIT bank<\/a> for the first round, and another option is a <a href=\"https:\/\/teachingmillionaires.com\/recommends\/sofi-bank-account\/\">free money account with SoFi Money<\/a>\u2014right now, they give you $50 when you open a free account.<\/p>\n\n\n\n<p>You can get started by <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">applying for your PPP loan right here<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Listen to Teacher Entrepreneurs Podcast<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<iframe style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/17643602\/height\/90\/theme\/custom\/thumbnail\/no\/direction\/backward\/render-playlist\/no\/custom-color\/daa520\/\" height=\"90\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"\" mozallowfullscreen=\"\" oallowfullscreen=\"\" msallowfullscreen=\"\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p>As always, I&#8217;m Rich and until next time.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>\u201cteachingmillionaires.com has partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/cardratings-blog-disclosure\/\" target=\"_blank\" rel=\"noreferrer noopener\">CardRatings<\/a> for our coverage of credit card products. <em>teachingmillionaires.com<\/em> and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved by any of these entities. <em>Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser&#8217;s responsibility to ensure all posts and\/or questions are answered<\/em>. I am not a financial advisor. The information I share is for educational purposes only and shouldn\u2019t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s an overview of where you can apply for second round of PPP, if you&#8217;re self employed &#8211; along with a breakdown of how to apply for PPP 2. Is There a Second Round of PPP Loans? The Paycheck Protection Program is back for another round.&nbsp; Also known as PPP, this second round is available&#8230;<\/p>\n","protected":false},"author":3,"featured_media":4375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[14,1],"tags":[],"class_list":["post-4366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stimulus-money","category-all-posts"],"featured_image_src_large":["https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/01\/PPP-2-Thumbnail-1-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Rich Smith","author_link":"https:\/\/teachingmillionaires.com\/newstag\/author\/rich\/"},"comment_info":8,"category_info":[{"term_id":14,"name":"Stimulus Money","slug":"stimulus-money","term_group":0,"term_taxonomy_id":14,"taxonomy":"category","description":"","parent":0,"count":13,"filter":"raw","cat_ID":14,"category_count":13,"category_description":"","cat_name":"Stimulus Money","category_nicename":"stimulus-money","category_parent":0},{"term_id":1,"name":"All Posts","slug":"all-posts","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":33,"filter":"raw","cat_ID":1,"category_count":33,"category_description":"","cat_name":"All Posts","category_nicename":"all-posts","category_parent":0}],"tag_info":false,"taxonomy_info":{"category":[{"value":14,"label":"Stimulus Money"},{"value":1,"label":"All Posts"}]},"_links":{"self":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/comments?post=4366"}],"version-history":[{"count":0,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media\/4375"}],"wp:attachment":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media?parent=4366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/categories?post=4366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/tags?post=4366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}