- March 8, 2021
- Posted by: admin
- Category: PPP, PPP2
Second Draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for 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.
In the final days of 2020, a second stimulus package was signed into law making $900 billion in federal funding available for COVID relief programs. Included in the new bill is $284 billion to reopen the Paycheck Protection Program for a second round (PPP2) and give small business owners access to emergency funds once again.
Who may qualify
A borrower is generally eligible for a Second Draw PPP loan if the borrower:
- Previously received a First Draw PPP loan and will or has used the full amount only 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