As of July 29, 2021
These FAQs are in the process of being revised and do not yet reflect changes made by the
American Rescue Plan Act of 2021 enacted on March 11, 2021.
Answer: No. Applicants may not use SBA’s established size standards (either revenue-
based or employee-based) or the alternative size standard to qualify for a Second Draw
PPP Loan. In general, the size eligibility requirement for Second Draw PPP Loans are
narrower than the size eligibility requirement for First Draw PPP Loans. With some
exceptions, an applicant is eligible for a Second Draw PPP Loan only if it, together with
its affiliates (if applicable), employs no more than 300 employees. The only exceptions
are if an Applicant:
• Is assigned a NAICS code beginning with 72 and employs no more than 300
employees per physical location, or
• Is a news organization that is majority owned or controlled by a business concern
that is assigned NAICS code 511110 or a NAICS code beginning with 5151 or is
a nonprofit public broadcasting entity with a trade or business under NAICS code
511110 or 5151, and, in either case, employs no more than 300 employees per
physical location.
64.Question: If an owner of an applicant, or a sole proprietor, self-employed individual, or
independent contractor has an Individual Taxpayer Identification Number (ITIN) instead
of a Social Security Number (SSN), can they use the ITIN on the Borrower Application
Form for a PPP loan and the forms to apply for loan forgiveness?
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Answer: Yes. If an owner of an applicant, or a sole proprietor, self-employed
individual, or independent contractor has an ITIN instead of an SSN, they may use the
ITIN on the PPP Borrower Application Form (SBA Forms 2483, 2483-C, 2483-SD, and
2483-SD-C, or lender’s equivalent) and the PPP Loan Forgiveness Application Forms
(SBA Forms 3508, 3508EZ, and 3508S, or lender’s equivalent). An ITIN is a tax
processing number only available to certain nonresident and resident aliens, their
spouses, and dependents who cannot get an SSN. It is a 9-digit number, beginning with
the number “9”, formatted like an SSN (NNN-NN-NNNN). To be eligible for a PPP loan
or to receive loan forgiveness, the applicant must meet all eligibility criteria and PPP
requirements, which includes the requirement that the principal place of residence for a
sole proprietor, self-employed individual, or independent contractor must be in the
United States.
65.Question: As of December 27, 2020, is an employer that receives a First Draw PPP
Loan or Second Draw PPP Loan also eligible for the Employee Retention Credit?
Answer: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, which was
enacted as Division EE of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-
260, 134 Stat. 1182, on December 27, 2020, permits an employer that received a First
Draw PPP Loan or Second Draw PPP Loan to claim the Employee Retention Credit if the
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Question 64 published March 3, 2021 and revised on March 12, 2021 to conform to subsection III.1.h. of the
interim final rule on Revisions to Loan Amount Calculation and Eligibility posted March 3, 2021.
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