Paycheck Protection Program (PPP)
2nd Draw PPP Borrowers

Congress passed and President Trump signed amendments to the March 2020 CARES and other laws to create a new PPP Second Draw Program for previous PPP borrowers who have exhausted their loan funds and can demonstrate significantly reduced receipts. There are special rules for the hospitality industry. See the eligibility details below. Customers Bank is now taking PPP Second Draw Loan applications. You can apply by using the link. NOTE: the SBA is staggering the start-dates for loan approval and funding by lender type and size. Customers Bank will not be able to submit your 2nd Draw loan application for funding until after Wednesday, January 13 at the earliest.


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Use

Payroll-related
Rent
Mortgage Interest
Utilites Expenses
Additional Expenses

Amount

2.5X

2.5x average monthly payroll, 3.5x average monthly payroll for food service & accommodations, capped at $2 million

Rate

1% APY

1% fixed Annual Percentage Rate

Terms

5yrs

5 year term total

Forgiveness

100%

eligible for 100% forgiveness with approval

The foregoing is presented as a matter of convenience, does not constitute legal, accounting, or tax advice, and does not purport to address all aspects of the March 2020 CARES Act or subsequent legislation. We strongly recommend that you consult your attorneys, CPAs, tax advisors, and financial consultants with any questions.

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Eligibility
Allowable Expenses
FAQs & Resources
Forgiveness Guidance

Eligibility

Previous PPP Loan borrowers who exhausted all of their first PPP loan funds; have fewer than 300 employees; and who can demonstrate a minimum 25% reduction in gross receipts in any financial quarter of 2020, compared to the same quarter in 2019; or a 25% reduction in gross receipts for the full year 2020 compared to 2019 may apply for a Second Draw Loan of up to 2.5 times average monthly payroll costs—up to $2 million dollars. Eligible second draw borrowers include business entities, sole proprietors, self-employed workers, contract workers and some nonprofit organizations. There are special rules – and more money – for Food service and accommodations businesses that fall under sector 72 of the North American Industry Classification System (NAICS). See the FAQs.

Allowable Expenses

In addition to payroll-related, rent, mortgage interest and utility expense; eligible expense have been expanded to include:

  • personal protective equipment and workplace construction/adaptations to health and safety guidelines;
  • software, cloud computing, human resources, and accounting needs;
  • property damage due to “public disturbances” during 2020 and which were not insured; and
  • required business supplies that would have been consumed and expensed had business operations continued as normal.

FAQs

How much can I borrow?
Generally, Second Draw Loans can be up to a maximum the lesser of 2.5 times average monthly payroll costs or $2 million dollars.

When will funds be available?
We are waiting for the complete rules from the SBA but are hopeful we will be able to take Second Draw applications soon.

What are the general eligibility rules?
Previous PPP Loan borrowers who exhausted all of their first PPP loan funds; have fewer than 300 employees; and who can demonstrate a minimum 25% reduction in gross receipts in any financial quarter of 2020, compared to the same quarter in 2019; or a 25% reduction in gross receipts for the full year 2020 compared to 2019 may apply for a Second Draw Loan of up to 2.5 times average monthly payroll costs—up to $2 million dollars.

Eligible second draw borrowers include business entities, sole proprietors, self-employed workers, contract workers and some nonprofit organizations.

What are the special rules for Hospitality Industry?
Food service and accommodations businesses that fall under sector 72 of the North American Industry Classification System (NAICS) may apply for a loan not to exceed:

  • Average monthly payroll costs over a 12-month period before the day the loan is made, multiplied by 3.5;
  • Average monthly payroll costs during the calendar year 2019, multiplied by 3.5
  • or $2 million

Have eligible expense changed?
In addition to payroll-related, rent, mortgage interest and utility expense; eligible expense have been expanded to include:

  • personal protective equipment and workplace construction/adaptations to health and safety guidelines;
  • software, cloud computing, human resources, and accounting needs;
  • property damage due to “public disturbances” during 2020 and which were not insured; and
  • required business supplies that would have been consumed and expensed had business operations continued as normal.

Why are my documents not uploading?
When possible, uploading PDFs is preferrable and will expedite the processing timeframe. It is also recommended that you upload 1 document at a time.

The “Payroll Calculation” page will not allow me to continue.
Ensure all fields are populated, including the “Explanation” box at
the bottom. Once populated, click anywhere on the page and the application
should allow you to continue.

The “Owner Information” section is not saving or allowing me to progress.
If you are having trouble getting the “Save owner info” or “Continue” buttons to appear, make sure all information has been provided for each owner, and then hit “Enter” on your keyboard, or click anywhere on the page.

Resources

Application Documentation Prep List

Forgiveness

Customers Bank is creating a portal to assist customers with forgiveness. We’ll update this page with more information once the portal is available to borrowers.