COVID-Related Costs Now Covered by SBA’s Second Draw PPP Loans

As COVID-19 caused massive lockdowns and social restrictions, businesses across the nation faced another threat. From widespread layoffs to closing doors completely, the battle against COVID-19 caused many small businesses to collapse. However, there may be help available to cover costs that could keep you in business. Below, the experts with Action Services Group explain SBA Loans and how they can be used to cover COVID-related expenses to ensure your facility meets with local, state, and federal guidelines. (And better yet – how this loan can be entirely forgivable!)

What Are SBA PPP Loans?

Starting in April 2020, the Small Business Administration (SBA) offered businesses with 500 or fewer employees, including non-profits, veteran organizations, independent contractors, and other such companies, the chance to apply for the Paycheck Protection Program (PPP).

First Draw PPP Loans

The First Draw PPP loans, which occurred in April 2020, were meant to cover up to 8 weeks of payroll costs, including benefits. However, they could also be used to cover interests on mortgages, rent, utilities. (It is important to note that at least 75% of these loans must be used to cover payroll.) Additionally, employers were required to maintain or rapidly rehire employees, while maintaining salaries. If these instructions were followed, the PPP loans were entirely forgiven.

Second Draw PPP Loans

Understanding that we are still fighting the impacts of COVID-19, the SBA, in collaboration with the U.S. Treasury Department, has reopened the PPP. As of 13 January, 2021, applications are now being accepted by participating lenders. Unlike the First Draw PPP Loans, these come with a much broader list of acceptable and forgivable uses. For those who did not receive a First Draw PPP Loan, you may file for your first one now, then pursue a second one once those funds have been exhausted.

How PPP Loans Can Help With COVID-Related Costs

Unlike the First Draw PPP Loans, these Second Draw PPP Loans permit business owners to use them for personal protective equipment (PPE) and other COVID-related costs that were previously not permittable.

Keep Your Doors Open and Occupants Safe

Under the First Draw PPP Loans, these expenses were still left to small businesses to cover, many of which were unable to do so even with the payroll help. Being able to use these funds to help protect your employees and customers can be of great benefit. In fact, the Second Draw PPP Loans now allow applicants to cover costs, including both capital or operating expenditures, which can help the company to adapt to COVID-related regulations. This includes any regulations issued by local, state, or federal agencies that pertain to sanitation, employee or customer safety, and social distancing. Some of these expenses may include, but are not limited to:

  • Ventilation/Filtration Systems, to include both indoor or outdoor air or air-pressure systems;
  • Health-Screening Capabilities, such as temperature checks which can be on- or off-site;
  • Physical Barriers, such as sneeze guards, cubicle extenders, PVC and Plexiglass barriers;
  • Drive-Thru Windows, to include both the renovation or creation of a new one;
  • Expansions, to include additional indoor, outdoor, or combined spaces that allow for customers to be appropriately distanced from each other;
  • PPE, including respirators, masks, gloves, and other such equipment.

To ensure your loan is forgiven, even in the event of an audit, it is highly encouraged that companies keep diligent records of everything the money was used for. This may include increased janitorial services, UV-C fixtures purchased to keep spaces sanitized, air purification systems to eliminate airborne pathogens, or technologies purchased to support remote work for employees.


Action Services Group is a leader in Workplace Safety products and solutions. We understand the difficulties facing businesses today. We are here to assist you in answering any questions you may have as well as supplying you with the workplace safety products you need. You can schedule a call to speak with one of our workplace safety specialists or you can find a solution below and learn more.

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Uses Not Covered by Second Draw PPP Loans

While the regulations contained for the Second Draw PPP Loans are intentionally vague to allow for maximum usage by small businesses impacted by COVID-19, recipients of these loans are not permitted to use these funds for residential property or intangible properties. These applications are strictly forbidden and will require repayment of the loan.

Protect Your Business with Action Services Group

The experts with Action Services Group understand how devastating the impacts of COVID-19 have been on small businesses. We are here to help. Action Services Group is standing by to help keep your doors open, as well as help in addressing concerns your employees or customers may have. From UV-C lighting fixtures to air filtration systems, we are ready to help. If you are interested in learning more about COVID-19 safety improvements, as well as how the SBA PPP Loans could be applied. Please contact us today by calling 610-558-9773 or email [email protected]. You can also schedule a call by clicking the button below. Website Button - Schedule A Call

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Testimonial

“We are thrilled with our new air purification system and our whole organization can rest easier knowing our buildings indoor air quality is 99.995% filtered of all pollutants. The installation crew was quick, professional, and they cleaned up after themselves. Thank you, Action Services group!”  Director of Human Resources – Transitional Care and Rehabilitation Center