skip to main content

2nd Draw Resources

So you and your business can stay up to date

Small Business Owners could use a little support.Our goal is to help them find it.

Paycheck Protection Program Second Draw Loans

The recently enacted $900 billion COVID-19 relief bill contains provisions for a second draw of Paycheck Protection Program loans. If your company obtained a PPP loan through LCA Bank Corporation in 2020, you may be eligible to apply for a forgivable, Second Draw PPP loan with LCA Bank Corporation.

If you would like to proceed with your application, please take a moment and note the required documentation before proceeding, which can be found below in Company Information, Loan Amount Requested and Payroll Information. When you have all of the required information/documentation, please click Apply Now.

Required Information & Documentation

Company Information
  • NAICS Code – this should be on the front page of the tax return; if not, please visit to determine your code
  • Franchise Identification Code – if your business is a franchise, this must be provided
  • Records providing proof that gross revenues have decreased at least 25 percent between comparable quarters in 2019 and 2020
Loan Amount Requested

You may request a loan in an amount of up to two and one-half months of your average monthly payroll costs from 2019 or 2020. If your business falls under the NAICS Code 72 (Accommodation and Food Services), your maximum loan size is three-and-a-half times average monthly payroll costs. Payroll costs will be capped at $100,000 on an annualized basis for each employee and calculated using the gross monthly payroll before deduction of taxes.

Payroll Information (This information should be available from your CPA or payroll company)
  • W-3 (aggregate of all W-2s) or quarterly Form 941 and W-2s for all employees making over $100k in the same period – salary amounts in excess of $100k must be deducted from total
  • If a business has been open less than 12 months, monthly payroll records will be required
  • Payroll costs include: salary, wage, commission or similar compensation; payment of cash tip or equivalent; payment for vacation, parental, family, medical or sick leave; allowance for dismissal or separation; payment required for the provisions of group health care benefits, including insurance premiums; payment of any retirement benefit; payment of state or local tax assessed on the compensation of employees; the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment or similar compensation and that is in an amount that is not more than $100,000 in one year, as prorated for the covered period

PPP Second Draw Loan Highlights

  • Creates a second round of PPP loans for eligible businesses
  • Defines eligibility for the forgivable PPP second draw, as small businesses that have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020
  • Establishes a maximum loan size of two-and-a-half times average monthly payroll costs, up to $2 million
  • Allows small businesses assigned to the industry NAICS Code 72 (Accommodation and Food Services) to receive PPP second draw loans equal to three-and-a-half times average monthly payroll costs in order to help these businesses combat onerous state and locate restrictions
  • Borrowers receive full loan forgiveness if they spend at lease 60 percent of their PPP second draw loan on payroll costs over a time period of their choosing between 8 and 24 weeks
  • Affirms the eligibility of churches and religious organizations and prohibits a future administration from making them ineligible
  • Preserves the application of affiliation rules to nonprofits

Paycheck Protection Program Improvements

  • Expands PPP allowable and forgivable expenses to include supplier costs on existing contracts and purchase orders, including the cost for perishable goods at any time, costs relating to worker protective equipment and adaptive costs and technology operations expenditures
  • Simplifies the forgiveness application process for smaller loans up to $150,000
  • Allows PPP borrowers to include additional group insurance payments when calculating their PPP payroll costs – this would cover insurance plans such as vision, dental, disability and life insurance
  • Allows PPP borrowers who returned all of part of their PPP loan to reapply for the maximum amount applicable
  • Eliminates the requirement that EIDL advances be subtracted from PPP forgiveness
  • Establishes a $15 billion grant program to support shuttered live venues, theaters, museums and zoos that have experienced significant revenue losses

We are committed to supporting you

LCA has created a task force that is continuously monitoring federal, state and local government communications and will adjust our response and plan to ensure we are able to keep our valued clients well informed.

We have included some valuable links below for your reference. Should you need additional assistance with any new business, please contact your account executive or fill out the form to the right and someone will contact you as soon as possible.

Get in touch

If you need further assistance or have a question, please complete the simple form or email us. An LCA representative will repsond to you as soon as possible

LCA Bank Corporation
3150 Livernois Rd, Suite 300
Troy, Michigan 48083

Phone: 866.323.8532