Advertiser Disclosure

✉️ Grow your business with our expert content delivered to your inbox. Subscribe Now

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

    Chris Motola
  • 14 comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
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
View Chris Motola's professional experience on LinkedIn.
Leave a comment

14 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    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.

        Dan

        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.

            Walter

            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.
            Walter.

              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

                  Hello,
                  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!

                            Jerry

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

                              Jessica Dinsmore

                              Awesome! Thanks for sharing, Jerry.

                              Leave a Reply

                              Your email address will not be published. Required fields are marked *

                              Your Review

                              Comment moderation is enabled. Your comment may take some time to appear.
                              Please read the "User Review and Comment Policy" before posting.

                              Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

                              The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.

                              Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.

                              PPP & EIDL Are Not Your Only Options

                              The SBA has expanded their loan portfolio and we have the list that no one else is talking about (yet) — Sign up for our newsletter to get your free copy!

                              • This field is for validation purposes and should be left unchanged.

                              Sign up for the Maverick Newsletter

                              • Please select topics of interest

                              • We occasionally send out emails with special offers.
                              • This field is for validation purposes and should be left unchanged.