If your business has already received a First Draw PPP loan, you may be eligible for a Second Draw PPP Loan. New companies that have not already received a PPP Loan are now allowed to apply for a First Draw PPP Loan.

Here are some critical updates listed by SBA for Second Draw PPP Loans:

• Specific current PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
• Some existing PPP borrowers may request to adjust their First Draw PPP Loan amount.
• The PPP provides greater flexibility for temporary/ seasonal employees.
• PPP loans will cover further business costs, including property damage expenses, operations costs, worker protection expenses, and supplier costs for up to 40% of the total loan.
• Borrowers can set their second draw PPP loan covered period to be any length between 8 – 24 weeks to meet their business needs best.
• The program’s eligibility is increased to include 501(c)(6)s, direct marketing organizations, housing co-ops, and other types of companies.
• If you have already received the EIDL advance with your first PPP loan and applied for forgiveness, the forgiven amount did not include the EIDL advance. This has now been reversed, so if you have made payments or paid off this amount, then your funds will be returned to you.
• The payback period changed from 24 months to 60 months.
• If your Second Draw PPP Loan is below $150,000, the process will be expedited.
• You must certify that your continuation of business is dependent on this loan.
• You will have 24 weeks to spend the funds received.
• The end date is March 31, or when funds are depleted.
• It is highly recommended to use the same vendor you used for the first loan.
• The loan amount is up to 2.5% of the monthly payroll (must be payroll and not 1099 employees/ subcontractors).
• Hospitality businesses (NCIS codes beginning at 72 based on 2019 tax return) will be eligible for a principal loan amount of 3.5% of monthly payroll.

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Donna Clark
Tax Professional, Bookkeeper, Enrolled Agent — RWB Tax Service

Donna Clark is an Enrolled Agent (EA), Certified QuickBooks ProAdvisor, and owner of RWB Tax Service. With decades of experience helping individuals and businesses navigate tax preparation, bookkeeping, payroll, and IRS matters, she provides practical guidance designed to help clients stay compliant and make informed financial decisions.

As a federally licensed tax professional authorized to represent taxpayers before the IRS, Donna works with clients throughout Georgia and beyond, combining technical tax knowledge with a personalized approach focused on accuracy, service, and long-term financial success.

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