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Should You Make a Second Draw PPP Loan Application?

By March 17, 2021News

The deadline for Second Draw PPP Loan applications is coming up quickly on March 31. Eligible employers include (1) those who received a First Draw loan and have or will use all of the proceeds and (2) those who can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. What’s different about qualifying this time around is applicants are capped at those businesses with no more than 300 employees. In addition, after much negative press about large firms receiving First Draw loans, this program held an exclusivity period for the first two weeks after opening, limiting applications to those businesses and nonprofits with fewer than 20 employees.

It is expected that there will be unused funds at the end of the application period so if you think your business might be eligible, now would be a good time to revisit quarter over quarter revenues. Employers planning to make a Second Draw application should contact MarathonHR for assistance with payroll reporting information.