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.
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.
*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
- 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
- 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