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Effective January 14, 2021

Paycheck Protection Program Resumes

Mission Bank is participating in the Second Draw of the SBA Paycheck Protection Program ("PPP"). 

While media and industry sources are still attempting to understand the program and relay information, here are a few critial components of the Second Draw PPP loan program.​

• The SBA portal accepting applications is opening on a staggered basis, most US banks are not permitted to submit loans yet. Mission Bank will be allowed to process Second Draw PPP loans starting Tuesday, January 19, 2021.
• The Second Draw funding is enough to cover the demand. 
• The SBA approval will not be instantaneous. We expect a delay of a few days for SBA approval and funding of your loan. We ask for your patience during this time.
• In addition to many of the requirements in First Draw loans, Second Draw loans require the borrower to have had at least a 25% decline in revenue from 2019 to 2020, or from comparable quarters in 2019 and 2020.

We realize the importance of this program to your business and we are working hard to ensure we are ready to walk you through the process.

Attached is a letter to customers from A.J. Antongiovanni, President and CEO of Mission Bank, regarding the Second Draw loan program. 

Second Draw Program FAQs

What loan amount is available?

For most borrowers, the maximum loan amount of a Second Draw PPP loan is 2.5 times the average monthly 2019 or 2020 payroll costs, up to $2 million.

For borrowers in the Accommodation and Food Services sector (NAICS 72), the maximum loan amount for a Second Draw PPP loan is 3.5 times the average monthly 2019 or 2020 payroll costs, up to $2 million.

Is my business eligible?

A borrower is generally eligible for a Second Draw PPP loan if the borrower: 

• Was eligible for, and previously received, a First Draw PPP loan
• Has or will use the full loan amount only for authorized uses before the Second Draw PPP loan is disbursed
• Has no more than 300 employees
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

When can my business apply?

The SBA portal accepting applications is opening on a staggered basis. Mission Bank (along with most other US financial institutions) will be allowed to process Second Draw PPP loans starting Tuesday, January 19, 2021.

When does the program end?

The Second Draw PPP loan applications are being accepted until March 31, 2021.

Will the SBA run out of funds for the Second Draw PPP loans?

The Second Draw funding is enough to cover the demand. The US Treasury and SBA are urging the banking industry and borrowers to be patient and avoid the mad dash created in March 2020.

How can my business apply for a Second Draw PPP loan?

Please contact your Relationship Manager or local business banking center for more details and look to missionbank.com for the latest news.
 

Previous communications:
PPP Loan Forgiveness Update August 3, 2020
SBA Paycheck Protection Program Update April 3, 2020
CARES Act Update March 31, 2020
Press Release dated March 21, 2020
Letter dated March 16, 2020
Letter dated March 12, 2020

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