The Small Business Administration (SBA) is opening Round 2 of the Paycheck Protection Program (PPP) on January 19th.
The PPP provides loans to small businesses to keep their workforce employed throughout COVID-19. This second round of PPP is administering both First Draw and Second Draw loans.
Who is eligible for PPP Second Draw?
- Business who previously received a First Draw PPP Loan and will or have used the full amount
- Businesses with no more than 300 employees
- Businesses that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
- Businesses must have employees in the US or be paying yourself as a US resident
What does the Second Draw loan offer businesses?
- Most businesses can apply for 2.5x the average monthly 2019 or 2020 payroll costs, up to $2 million
- Loans will be fully forgiven if funds are spent within 8-24 weeks
- The loan now covers a wider range of eligible expenses, including: fund payroll costs (including benefits), mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Applying for PPP Second Draw through Mercury
If you’re a Mercury customer interested in applying for a loan, look out for an email with more information. We’ll be opening applications through a new partner bank soon.
If you’re not yet a Mercury customer but would like to apply for a loan with our partner, you can apply for an account here.
Join Us for a Virtual Event on PPP Second Draw
Still have questions? Join Immad Akhund, Mercury CEO, for a live event with Larry Kaplan and Chuck Patrizia, attorneys at Paul Hastings LLP.
They’ll talk about what founders and business owners need to know about the Paycheck Protection Program, including:
- Who is eligible to apply
- How loan forgiveness and repayment will work
- What to know if you’re self-employed or founded your business in the last year
… and much more.
Sign up for the event here.
If you have any questions, just send us an email at [email protected].
The Mercury Team