PPP Second Draw

PPP Second Draw Loans

About the Program

PPP Second Draw loans are available for small businesses, non-profits, sole proprietors and independent contractors.  The Small Business Administration will begin accepting applications from partner lenders beginning the week of January 11, 2021. Loan applications will be accepted through May 31, 2021 or until available funding becomes exhausted, which ever comes first. 

Please note that there some important program changes for Second Draw Loans.  We encourage you to become familiar with details of the program as outlined below and to visit the U.S. Department of the Treasury and Small Business Administration websites for complete full and complete information.

Eligibility Requirements

Please review and determine that the following eligibility requirements are met before submitting your application;
  • Have used or will have used the full amount of your first PPP Loan before applying for a second draw loan
  • Have no more than 300 employees
  • Demonstrated a reduction in gross receipts of at least 25 percent in any quarter of 2020 relative to the same quarter of 2019

Loan Amount

For most borrowers, the maximum loan amount is 2.5 times average monthly payroll cost - up to $2 million.  For borrowers in the food service industry (NAICS codes beginning in 72), the maximum loan amount is 3.5 times average monthly payroll cost - up to $2 million.  CLICK HERE for a loan calculation spreadsheet.

How to Apply

As an existing SBA 7(a) lender and federally insured deposit institution, F&M Trust is participating in the PPP Second Draw Program. To ensure timely and efficient processing of your application, please review the application instructions carefully. 

1. Complete the Paycheck Protection Program Application. Applicants who file on a Schedule C and wish to use gross income to calculate loan amount should use PPP Application Form 2483-SD-C
2. Gather ALL the required documentation based upon your loan amount, customer status, and entity type as outlined below.
3. Upload the completed application and ALL required documents via our Secure File Transfer (please use 'PPP Second Draw" in the attention to field).

* Please Note: In order to avoid delay in the application process, it is important that the application is completed in its entirety and is accompanied by the appropriate documentation as applicable. 

For current F&M Trust Customers:
  • If you received your first PPP Loan through F&M Trust AND your total loan amount is less than $150,000; please simply complete the appropriate loan application and upload.
  • If you received your first PPP Loan through F&M Trust AND your loan amount is greater than $150,000; please complete the appropriate loan application, gather the required documentation to demonstrate at least 25 percent reduction in revenue and upload together.
  • If you did not receive your first PPP Loan through F&M Trust, you may still apply with us; please complete the appropriate loan application, gather the required documentation for payroll amount verification (ie. reports from your payroll or benefits provider, 940/941 tax reports, tax returns, etc.), documentation for revenue reduction verification (if appropriate) and upload together.

For non-F&M Trust customers:
At F&M Trust, we are committed to meeting the needs of our communities.  In an effort to provide support and services for those who need it, F&M Trust will gladly accept and process applications from both current customers as well as entities within our trade area that may not have a relationship with the bank.  Complete applications submitted with the proper supporting documents as outlined below will be processed in the order they were received.  Therefore it is imperative that applicants have the appropriate documentation to accompany the application.  if you are applying as a non-F&M Trust customer please provide the documentation listed below as appropriate.

Additional Documentation Requirements for Non-F&M Trust Customers

For entities who currently DO NOT have accounts with F&M Trust, please see below for additional documentation requirements. To enable us to process your application, it is important the appropriate documents (as outline below) accompany your application.  

Business Entity Type Required Documents
Sole Proprietorship
  • Fictitious Name Registration (if applicable)
  • EIN Certification
  • Articles of incorporation or proof business is registered with state
  • Bylaws or Secretaries Certificate
  • Fictitious Name Registration (If applicable)
Nonprofit Corporation
  • EIN Certification
  • Articles of incorporation or proof business is registered with state
  • Operating agreement or bylaws
  • Letter of authority to open the account
  • EIN Certification
  • Operating agreement (if a sole member LLC, not required)
  • Certificate of organization or proof business is registered with state
  • Fictitious Name Registration (If applicable)
  • EIN Certification
  • Fictitious name registration
  • Partnership agreement
  • Certificate of Partnership – if a written agreement is filed with the state


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