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PPP Round 2: Main Differences Between The First & Second Round Of PPP Funding

    Chris Motola
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Chris Motola

Chris Motola

Expert Analyst & Reviewer at Merchant Maverick
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
Chris Motola
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    Mike Roth

    I was working a uber driver till the end of the March 2020. Am I eligible for PPE loan?
    I never applied it because I got a job from April 2020. Is anyone able to advise me?

      Erica Seppala

      Hi Mike!

      The purpose of the PPP loan is to help small businesses retain staff and cover other expenses necessary for operations. Unfortunately, only businesses that are operational or individuals that are currently self-employed are eligible to receive funding.


        Does PUA unemployment income received in 2020 need to be figured into the 25% income reduction when comparing to 2019? Or is PUA completely independent?

          Jessica Dinsmore

          Hi Dan,
          PUA is usually considered income and could be considered a part of your “gross receipts” depending on how your company is organized.


            Hi. I working in the limousine business, I have corporation and I am my only employee. I received the first PPP with which I paid my salary for 8 weeks. My question is that I can use as expenses to cover the other 25% of the loan. Since I have no rental expenses because I use my house for the office work, can I use the car mechanic expenses from the car I use for work, gasoline, cell phone bill and car loan payment?
            Thank you in advance for your time.
            Best regards.

              Jessica Dinsmore

              Hi Walter,

              Normally a sole proprietor can simply claim their entire PPP loan as owner compensation if they got one for a 24-week period. You could then spend it on whatever you felt like spending it on.
              But if I’m reading this correctly, you got a PPP loan prior to 6/10/20 and it only covered eight weeks, so there is some remaining funding that needs to be spent according to guidelines? My understanding is that car payments can fall under the “mortgage” cost expenditure category. Your cell phone bill, if it’s primarily for business could fall under utilities. I don’t believe car repairs or gasoline qualify, however.

                Just got first PPP loan how long till I can apply for the 2nd round.

                Got loan this round 2021 but monies are fone quick die to improvements needed to continue the business. Can I apply for the 2nd so soon. Just a month after the 1st loan?

                  Jessica Dinsmore

                  There isn’t a strict requirement that a business must have used all its first draw PPP loan funds to get a second loan, but there is currently a temporary requirement in place (until March 9th) that an entity must have fewer than 20 employees to get a second PPP loan. From March 10th to the 31st, second draw PPP loans will be available again to all eligible businesses.

                    Buddy Williams

                    We failed to include Company paid Healthcare costs in Round 1 application. We plan to include Company paid Healthcare costs in Round 2 application. Can we include the costs for Round 1 in our Round 2 application. We have been in business for 25 years and have always paid for Employee’s insurance.

                      Jessica Dinsmore

                      Hi Buddy,

                      You’re essentially calculating your average monthly expenditures, so I would use the updated, more correct total for Round 2. Just make sure you have documentation to support it. I would probably avoid counting your medical expenses twice this time, however, if that’s what you’re asking.

                        Paul Thomas

                        I need Application for PPP2 from Chase Bank

                          Jessica Dinsmore

                          Hi Paul,

                          You can check out our post 5 Banks That Are Accepting Applications For The Second Round Of PPP for important info and links. Good luck!


                            I had success with a small community bank accepting PPP applications & got it submitted to SBA. Site is out of Oklahoma!

                              Jessica Dinsmore

                              Awesome! Thanks for sharing, Jerry.

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