Skip to content

PPP Loan Program Is Now Open for First and Second Draw PPP Loans (Classic Bank, N.A. Starting 01/25/2021)

Paycheck Protection Program (PPP) loans – both first and second loans – have been extended through March 31, 2021 or until funding runs out.

First Draw PPP Loan

Who is eligible for a First Draw PPP Loan?

  • 500 or fewer employees (including sole proprietor, independent contractor, or self-employed individual)
  • Been in business prior to February 15, 2020

Links to SBA resources:

Top-line Overview of First Draw PPP (sba.gov)

How to Calculate First Draw PPP Loan Amounts (sba.gov)

PPP First Draw Borrower Application Form (sba.gov)

Second Draw PPP Loan

Who is eligible for a Second Draw PPP Loan?

  • 300 or fewer employees (including sole proprietor, independent contractor, or self-employed individual),
  • 25% or more reduction in gross receipts in Q1, Q2, Q3, Q4 of 2020 compared to same quarter in 2019 or 25% reduction in annual receipts in 2020 compared to 2019.
    • Please note that the SBA application does not call for financial documentation for borrowers under $150,000 at the time of application, rather at forgiveness only.   However, it is Classic Bank, N.A. position to require this documentation for ALL APPLICANTS as part of the application process.
  • Used all the funds from the first PPP loan or will have used all funds prior to disbursement of Second Draw loan
    • Classic Bank, N.A. requires that second draw applicants must have submitted their application for forgiveness on the first draw PPP loan AND we must have reviewed it and submitted it to the SBA to request forgiveness. 
  • Been in business prior to February 15, 2020

How should I calculate my loan amount based on average monthly payroll costs?

  • Loan amount is based on 2.5x the average 2019 monthly “payroll” costs, 2020 monthly “payroll” costs, or measured over the 12 months preceding the loan. Businesses in hospitality and restaurants (NAICS Code 72) are allowed 3.5x average monthly payroll.

SBA Resources:

Paycheck Protection Program Second Draw Loans: Overview (sba.gov)

Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide (sba.gov)

PPP Second Draw Borrower Application Form (sba.gov)

Building lifelong relationships by exceeding expectations