Applying for the Paycheck Protection Program Second Draw

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].

Thanks,

The Mercury Team