Martha’s Vineyard Bank is now accepting applications for its second round of the 2021 Small Business Administration (SBA) Paycheck Protection Program (PPP), according to a press release.
In the first round of lending in 2020, the bank processed nearly 40 percent of the total SBA-approved PPP loans in the Martha’s Vineyard and Falmouth area.
“Martha’s Vineyard Bank was proud to provide this level of support in the past, and we look
forward to serving the Martha’s Vineyard and Falmouth communities in this next round,” president and CEO of MV Bank James Anthony said in the release.
According to vice president of marketing and solution development Christine (“CJ”) Conrad, the bank processed more than 700 loans that were approved by the SBA during the last round, and they are hoping to have the same amount or more for this cycle.
“We are trying to help the businesses on the Island and in Falmouth,” Conrad said. “This round is very similar to the last round — helping small businesses stay afloat while they are mandatorily closed and suffering significant reductions in gross receipts.”
The program also allows certain eligible borrowers that previously received a PPP loan to apply for a second draw with the same general loan terms as their first PPP loan.
Second-draw loans can be used to help fund payroll costs, including benefits, along with 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.
Conrad noted that second-draw loans qualify for forgiveness if, during the covered period following loan disbursement, employee and compensation levels are maintained, and at least 60 percent of loan proceeds are spent on payroll costs.
A borrower eligible for a second-draw PPP loan must have previously received a first-draw loan and will or has used the full amount for authorized uses, has no more than 300 employees, and can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020.
