Lenders and the SBA are processing applications from businesses that are eligible for a second draw. Second Draw PPP Loans may be used to fund your payroll (and benefits) and mortgage interest, rent, utilities, and worker protection costs related to COVID-19.
The maximum amount of the Second Draw PPP loan is 2.5 times the average monthly payroll (for 2019 or 2020) up to $2 million.
Generally, a business will qualify for the Second Draw PPP Loan if the business:
- Received a First PPP Loan and used the full amount for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Application may be accepted until March 31, 2021. However, there is no guarantee that the $25 Billion that has been set aside will not be exhausted before then. For that reason, we are encouraging qualified businesses not to delay.
For our existing clients, please ask your attorney for more information. For new clients, please chat with our staff to schedule a consultation with one of our attorneys.