Whether you are ready to apply for PPP loan forgiveness or just thinking of applying for the next round of financing, Congress has expanded the types of expenses for which ALL PPP funds can be used. In addition to payroll, rent, mortgage interest and utilities, the PPP now allows proceeds to be used for the following:
- Operating Expenses: payments for business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment or tracking of payroll expenses and HR and billing functions - Supplier Costs: expenditures to a supplier of goods that are essential to the operations of the entity at the time at which the expenditure was made and is made pursuant to a contract or order in effect at any time before the covered period or, with respect to perishable goods, in effect at any time during the covered period - Property Damage Costs: costs related to property damage, or vandalism and looting resulted from riots that occurred during 2020, and was not covered by insurance or other compensation. - Worker Protection Expenditures: operating or capital expenditures that allow a business to comply with requirements or guidance issued by the CDC, HHS, OSHA or any state or local government, starting March 1, 2020. These typically include PPE, physical barriers that were put in place, expansion of indoor/outdoor space, ventilation or filtration systems and drive-through windows. As of today, SBA has not issued guidance and regulations related to the second round of PPP. We expect to provide updates as soon as the guidance and regulations are issued.