Company News

January 15, 2021

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 open an account here. It’s free and only takes about 10 minutes.


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.

What You Need to Know About the Paycheck Protection Program Second Draw

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