Continuing with our 2020 efforts to help over 3,000 small businesses gain access to Paycheck Protection Program (PPP) loans, Hanmi Bank is currently taking applications for PPP Second Draw loans.
This loan program allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
Hanmi Bank will be launching an online application on Tuesday, January 19th. Please contact the branch/banker you worked with in 2020 regarding the online application process.
We encourage you to start preparing the necessary information listed in the Application Form from Small Business Administration and submit it electronically for ease of processing.
For information regarding forgiveness of your existing PPP loan, please visit our PPP Forgiveness page.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs.
Maximum Loan Amount
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (Visit NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.