Wondering what the key differences are between a 1st Draw PPP loan and a 2nd Draw PPP loan? Watch our latest Ask a Banker video to gain insight on eligibility and documentation requirements for first-time and returning borrowers.

The “Ask a Banker” series features our knowledgeable team of bankers and staff answering your questions in their area of expertise. In this video, Joy Costanza, Senior Specialist Banker at Santander, outlines the application differences for the latest round of PPP loan funding.

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Hi my name is Joy Costanza and I am Senior Specialist Banker at Santander. My question is how is the latest round of PPP funding different from the previous rounds? New PPP funding is available for customers who received a loan previously and 1st time applicants. The rules are slightly different depending on whether you are applying for a 1st Draw or 2nd Draw PPP Loan. If you are applying for a 1st Draw PPP Loan, you can borrow up to 2.5x your business’s average monthly payroll, with a maximum of $10 million. You are eligible if your business has 500 or fewer employees. If you are applying for a 2nd Draw PPP Loan, for most businesses the maximum is still 2.5x average monthly payroll, but if your business is in Food or Accommodations industries you can borrow up to 3.5x the average monthly payroll for your 2nd Draw PPP Loan. The maximum for all second draw PPP loans is $2 million. Check out our PPP information portal on Santanderbank.com before you apply to ensure you know how much you’re eligible for and what payroll documents to provide with your application. 2nd PPP Loan applicants are also required to have experienced a revenue reduction of 25% between 2019 and 2020. If you are applying for loan over $150,000, you will provide information and documentation of your revenue reduction when you apply for your 2nd Loan. If you are applying for a loan of $150,000 or less, you won’t be required to provide information on your revenue reduction when applying for your loan, but you are required to certify that you meet the 25% threshold. Additionally, you will be required to provide the documentation supporting the 25 % revenue reduction at or before the time you apply for PPP loan forgiveness. All 2nd Draw PPP Loan Customers should become familiar with the revenue reduction requirements before applying. Check out our Revenue Reduction Guide for more information on what’s needed. For more ideas to help run your business, visit Santander’s Business First at businesshub dot Santander Bank dot com.


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