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Assistance for Small Business Owners

Paycheck Protection Program Extension

Second Round of Funding

On Monday, December 28, 2020 President Trump signed a $900 billion COVID–19 relief bill, which includes funding for a second round of Paycheck Protection Program (PPP) loans. Pacific Western Bank will be participating in this latest round of PPP loans. However, lenders are not able to process loans until the Small Business Administration provides guidance and details on the implementation of the program. Until that time, Pacific Western Bank will be monitoring progress from the SBA and will update this page regularly. We anticipate the program going live in the coming weeks.

No applications are being accepted at this time until we have further information from the SBA on how to proceed. The information below is preliminary and is subject to change as the SBA finalizes program details and parameters. 


Second Round Program Details
What to Expect

Second Round Program Details

  • A total of $248 billion in funding is allocated for the program, which will run through March 31, 2021.
  • Pacific Western Bank will be utilizing software to implement a loan portal. All applications will be submitted electronically.
  • Pacific Western Bank will prioritize existing PPP borrowers of the bank who wish to obtain an additional PPP loan for their business in addition to their existing PPP loan.
  • The maximum loan amount for second draws is $2 million. The total loan amount to any one borrower from all PPP loans cannot exceed $10 million.

Clarifications and Changes- First Round Forgiveness

Covered Period

Businesses can choose a covered period of time between 8 and 24 weeks.

Simplified Application

Loan forgiveness has been simplified for loans under $150K. A one-page application, certified by the borrower, will greatly streamline the process.

Eligible Expenses

Eligible expenses for forgiveness have been expanded for both first-draw loans that have not yet been forgiven and for second-draw loans.

Tax Deductibility

A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible.

Earlier Forgiveness Not Required

The business is not required to have completed forgiveness from earlier rounds of PPP in order to qualify for a second draw.

Paycheck Protection Program Second Draw Loans

Reduction in Revenue

The business must demonstrate a reduction in revenue of at least 25% in the first, second, or third quarter of 2020 compared with the same quarter in 2019. 

Number of Employees

The business must have less than 300 full-time, part-time, or seasonal employees. If the business has multiple locations, it cannot have more than 300 employees per location.

Operational Date Requirement

The business must have been operational before February 15, 2020 and must currently be operational.

Demonstrated Need

The business must demonstrate it has, or will have, used the full amount of the first-draw PPP Loan.

Calculate by Establishing the Lesser of:
How to Calculate Second Draw Amount

Calculate by Establishing the Lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
  • For hospitality and entertainment businesses such as hotels, restaurants, and businesses under Code 72 of the NAICS Code, the multiplier is 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received.
  • Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 14, 2019 through February 15, 2020