Can I Apply for the PPP Twice?

By Owen Yin on September 2, 2020

Editor’s note: The PPP is currently closed. Both Democrats and Republicans are backing another round of PPP funding which makes a new round of funding promising. Read more in our breakdown of the two bills being debated.

The Paycheck Protection Program is a forgivable loan program with finite funds—when the original $349 billion was exhausted, lenders stopped offering the loan. Which means now that the PPP has been replenished and extended, small business owners are scrambling to get approved for round two.

To that end, many are asking , “can I apply through more than one lender to increase my chances?” and “if I already got a PPP loan, can I apply for another?”

Can I get two different PPP loans?

No. If you already received a PPP loan, you won’t be able to get a second one. However, if you have multiple businesses with different tax IDs, you can get PPP loans for your different businesses.

I’m applying for my first PPP loan. Can I apply through more than one lender?

Yes! There is no risk in applying with more than one lender.

According to our lending partners, the SBA’s system will accept the first valid application that arrives, and automatically rejects subsequent ones. Here’s an overview of how your lender sends your application to the SBA:

  1. The lender processes your completed application, which contains your tax ID (EIN or SSN)

  2. The lender submits your application to the SBA through a system called E-Tran

  3. If everything is in order, the SBA reserves your funds and assigns an approval number called a PLP (preferred lending partner number).

  4. The PLP is associated with your Tax ID and no further PLPs can be issued.

  5. The lender is able to send you closing documents and use the PLP to complete the loan process

Any lender that attempts to submit a new application for a tax ID that already has a PLP assigned to it will receive an automatic rejection from the E-Tran system. There is no risk of being flagged for fraud for applying more than once.

In fact, it’s a good idea to apply to multiple lenders to maximize your chance of obtaining funding.

Here’s what action you should take, depending on where you are in the process.

I applied to my bank and haven’t heard back.

We recommend you begin an application with a second lender in order to increase your chance of receiving PPP funding. Consider a community bank or credit union in your city, as a portion of the new funding is reserved for those smaller lenders only. Online lenders such as Fundera, Kabbage, BlueVine, and Lendio are also options.

Further reading: PPP Lenders Accepting Applications in July 2020

I applied to my bank and heard back.

Great—it sounds like your application is ready to go. Your processed application is now in your bank’s queue. Be sure to respond to any follow-up requests they may have. Missing documents or incomplete financials can greatly hold up an application.

But until you’ve actually been approved for a PPP loan, you can still go ahead and apply through a second lender, just in case.

I haven’t applied yet.

Carpe diem—apply ASAP. We recommend going with an online fintech lender such as Bluevine or Lendio due to their efficient processes.

Further reading: PPP Lenders Accepting Applications in July 2020

I applied and got approved.

Congratulations! Check out our guide for what to do once you’ve been approved.

I applied and got rejected.

You can choose to continue working with your lender to provide missing documentation if that was the reason for the rejection. You can also begin a second application with another lender.

If you were disqualified from the PPP, there are other options available to you.

I applied, but I have another business.

There is a limit of one PPP loan per tax ID. If your second business has a separate unique EIN, it’s eligible to apply for the PPP as well.

More COVID-19 Resources

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

Friends don’t let friends do their own bookkeeping. Share this article.

Want a free month of bookkeeping?

Sign up for a trial of Bench. We’ll do one month of your bookkeeping and prepare a set of financial statements for you to keep. No pressure, no credit card required.

Decorative patterns