Helpful Information for Returning PPP Customers

Applying for a Second PPP Loan

Live Oak is helping our PPP customers apply for a second round PPP loan. To prepare for the application, review Gusto’s thorough overview of second PPP loans and our high-level steps below for completing your second PPP loan application.

Second Draw Process

Step 1: Access Live Oak’s PPP Loan Portal
You will need credentials to enter the PPP Loan Portal.

Current PPP Customers with Portal Credentials

Current PPP Customers without Portal Credentials

Email ppp@liveoak.bank to receive access.

Step 2: Complete your application for Second Draw PPP Loan
You will see your “Marketplace” tab in the top right of the Portal, next to your name. Access the application and begin processing your PPP Second Draw application in the “Marketplace” tab. Be prepared with business information, average monthly payroll calculation and business ownership information.

Step 3: Upload the necessary payroll documents
To ensure the accuracy of your application, Live Oak will need you to resubmit the documents you used to apply for your first PPP loan. Please upload payroll documents to validate your loan application. IRS Forms 941, 940 or 944 and/or 3rd party payroll reports.

Step 4: Upload revenue reduction documents*
If you are using a quarter over quarter comparison, you will need to provide quarterly financials for the same quarter in 2019 and 2020. If you are using 2020 vs 2019, you will need to provide your 2019 full tax return and your 2020 full tax return. There are additional details in the SBA’s guidance on How to Calculate Revenue Reduction and What Documentation to Provide.

Step 5: LOB reviewer reviews for accuracy and submits to the SBA for approval
Your assigned PPP loan reviewer will review your loan application to ensure you have uploaded the required payroll documentation and calculated loan amounts accurately. Your reviewer will email you directly when the review is complete, and the loan application has been submitted to the SBA.

Step 6: The SBA’s loan application approval is received by Live Oak Bank
The SBA has stated that the lender should receive approval and a loan number for each customer application within 24-48 hours. Your Live Oak PPP loan reviewer will email you directly when we receive approval from the SBA.

Step 7: Live Oak Bank closes your Second Draw PPP Loan and releases funding to you
When Live Oak receives approval and loan number from the SBA, we will work diligently to close your PPP loan. We will send final loan closing documents for you to sign prior to funding your loan. Once we receive signed loan closing documents, we will provide your loan funds to you.

*For loans $150,000 and less you are not required to provide the documentation to verify the revenue reduction but you will be required to input the quarterly gross receipt from your reference quarter and your current quarter. You will be required to provide the supporting documentation at the time of forgiveness.

Second PPP Loan Requirements

Eligibility

300 employees or less
Experienced a 25% reduction in gross receipts in any quarter of 2020, compared to the same quarter in 2019
Exhausted first PPP loan funds
Entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors and small agricultural co-operatives

Terms

Maximum loan amount of $2 million
Loan amounts up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year
For customers in industries assigned to NAICS code 72 (including food service or accommodations), borrowers may receive loans of up to 3.5X average monthly payroll costs

High-level Overview of Second PPP Loan Second PPP Loan Calculation Second PPP Loan Process

FIRST PPP LOAN REQUIREMENTS

We are working diligently to expand our system to provide Second Draw PPP loans to our loan customers. As soon as we can accept additional customer applications, we will notify our customers. If you choose to apply immediately, we recommend ACAP or BlueVine as alternate lender options for obtaining a PPP loan. You may access these lender applications here.

Eligibility

500 employees or less
Entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors and small agricultural co-operatives
First PPP loans made to eligible borrowers qualify for full loan forgiveness if all three of these criteria are met during the 8- to 24-week period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses
- At least 60 percent of the proceeds are spent on payroll costs

Terms

Maximum loan amount of $10 million
Loan amounts up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year
Funds can be used to: help with payroll costs, including benefits; pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations

High-level Overview of First PPP Loan First PPP Loan Calculation

Reapply or Request an Increase to Your PPP Loan

According to guidance from the SBA, the following borrowers can reapply or request an increase to their PPP loan amount:

If a borrower returned all of a PPP loan, the borrower may reapply for a PPP loan in an amount the borrower is eligible for under current PPP rules
If a borrower returned part of a PPP loan, the borrower may reapply for an amount equal to the difference between the amount retained and the amount previously approved
If a borrower did not accept the full amount of a PPP loan for which it was approved, the borrower may request an increase in the amount of the PPP loan up to the amount previously approved
Seasonal employees and partnerships are also eligible for additional loan amounts

If you are a Live Oak customer and have questions about a PPP loan application or forgiveness, you may call us at 866-276-0154.

PPP Support Specialists are available Monday through Friday from 8:00 a.m. – 5:00 p.m. EST.