February 2021 Article by:

Michael S. Hampleman & Roman A. Basi

Basi, Basi & Associates at The Center for Financial, Legal & Tax Planning, Inc.

Business owners, CPAs, loan officers, and if applicable, business brokers, should use a variety of tactics simultaneously as businesses pursue economic support in the form of a second draw of PPP funding. Per advice from the AICPA, the American Institute of Certified Public Accountants, borrowers may need to be act quickly and diligently to fill out their forms for a second round of PPP funding.

Some lenders are requiring PPP borrowers to apply for forgiveness on their first-draw PPP loan before they file to seek a second-draw PPP loan. However, according to the SBA and Treasury, this is not a requirement. Possible borrowers may want to consider other lenders to process the second-draw loan application without the business having to file for forgiveness on their first PPP loan.

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