Paycheck Protection Program (PPP) Resumes Small Business Loans - Second Round Loan Eligibility, Expenses and Forgiveness

Sep 19, 2026

Compliance alert explains the SBA’s second round resumption of Paycheck Protection Program (PPP) loan applications for eligible small businesses, starting January 13, 2021, and accepting applications through March 31, 2021. It outlines eligibility criteria (including businesses with up to 300 employees and prior PPP borrowers) and allowable uses tied to maintaining payroll and employee benefits. The alert details eligible expenses for loan proceeds and notes potential loan forgiveness up to 100% when funds are used to support qualifying expenses, with guidance to contact lenders or local SBA offices.

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CategoryLetters

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Eligibility and application window

Who is eligible

Application deadline

Using the loan for payroll and benefits

Eligible expenses

Payroll costs and permitted uses

Loan forgiveness and next steps

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January 13, 2021 | | --- | | Paycheck Protection Program (PPP) Resumes Small Business Loans
By Ashley Dillingham, J.D.
Compliance & HR Manager
On January 13, 2021, the Small Business Administration (SBA) will begin accepting Paycheck Protection Program (PPP) loan applications from eligible small businesses. The PPP loan program was previously established by the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Who is Eligible for the Loan?
Small Businesses
• Any business, private nonprofit organization, or public nonprofit organization that has no more than 300 employees is eligible to apply fora loan. (Previously, employers who had no more than 500 employees were eligible for the loan) .
• Small businesses that previously received a PPP loan (and used the loan for “authorized uses”) are still eligible to apply.
• Applications will be accepted until March 31, 2021.
• Eligible small businesses may access the application form here: SBA PPP Loan Application Form
Maintaining Payroll & Employee Benefits
Eligible Expenses
• This second round of loans will follow the same rules as the previous PPP loans.
• Eligible employers may use the loan to pay for the following expenses: payroll costs, mortgage payments, rent (including rent under a lese agreement), utilities, and any debt obligations incurred prior to the loan.
• Payroll costs include the following: salary, wages, tips, sick leave, medical or family leave, group health benefits, retirement benefits, and any employer paid payroll taxes.
Loan Forgiveness
Eligible employers who receive a loan may still be eligible for loan forgiveness (up to 100%) if the loan is used to maintain eligible expenses.
Additional Questions?
For more information on how to apply for a small business loan and the loan forgiveness program, please contact your commercial lender and your local SBA office. We also recommend visiting the SBA’s COVID-19 Resource page for more information.
[If you have any additional questions or concerns please contact me at](If you have any additional questions or concerns please contact me at adillingham@benefitreview.com)[ ](If you have any additional questions or concerns please contact me at adillingham@benefitreview.com)[adillingham@benefitreview.com](If you have any additional questions or concerns please contact me at adillingham@benefitreview.com)
Disclaimer: This Compliance Alert is for informational purposes only. It is not intended to be exhaustive and should not be construed as or substituted for legal or tax advice. Please consult with legal counsel or a tax advisor for further guidance. | |
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FAQs

When does the SBA begin accepting second-round PPP loan applications, and until when?

The SBA begins accepting applications on January 13, 2021, and accepts them until March 31, 2021.

Which small businesses are eligible to apply for the second-round PPP loans?

Eligible borrowers include businesses and nonprofit organizations with no more than 300 employees, and businesses that previously received a PPP loan and used it for authorized uses.

What expenses can PPP loan funds be used for, and how does loan forgiveness work?

Loan funds may be used for payroll costs, mortgage payments, rent, utilities, and certain existing debt obligations. Employers may be eligible for loan forgiveness up to 100% when the loan is used to maintain eligible expenses.

Sep 19, 2026

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