PPP Loan Round 2: Cloud Software As An Expense For Business

The second round of PPP can be used for Cloud Software Upgrades

During these unprecedented times business had to evolve and make critical decisions to stay in-business through COVID times, by enforcing safety standards for employees and customers/vendors.

As a business owner you might have heard that the second round of relief from the Pay Check Protection Program (PPP) is underway and the deadline of Mar 31st is approaching sooner, to apply and get approved.
Under the new PPP-2 you can get up to 40% of PPP-2 funding can be used for software upgrades or cloud software enabling remote workforce.

“any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses.”
PPP- SBA

When can I apply for a PPP-2 loan?

As of Jan. 19, you can apply with any lender; some lenders were allowed to start accepting applications the week prior. Beginning February 24, only businesses with fewer than 20 employees can apply for the next round of funding. Starting March 10, all businesses that meet the above criteria have until March 31 to submit an application.

Know more about PPP-2 loan forgiven? What can I spend it on?

You can get your PPP-2 loan forgiven if, over your “covered period” of 8-24 weeks, you:

Spend at least 60% of the funds on payroll.
Maintain employee and compensation levels in the same manner as required for the first-draw PPP loan. This means you need to maintain the same number of full-time employees during your “covered period” and pay these employees at least 75% of their usual compensation.
You can spend the remaining 40% of your loan on payroll or other “eligible costs.”
These “eligible costs” include those outlined in the original PPP:

Rent
Covered mortgage interest
Utilities
And, in a change from the original program, “eligible costs” for PPP-2 also include:

Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines. Businesses might, for example, use some of their PPP-2 money to improve office ventilation systems or provide onsite health screenings.

Covered property damage costs related to property damage and vandalism or looting due to public disturbances in 2020 that were not covered by insurance or other compensation.
Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations.

Covered operating expenditures*, which refer to payments for any business software or cloud computing service that facilitates:

Business operations
Product or service delivery
Processing, payment or tracking of payroll expenses
Human resources
Sales and billing functions
Accounting or tracking of supplies, inventory, records and expenses

*In other words, you can spend your PPP-2 money on expenses that keep your business going. In the IT category, this might include accounting software or monthly subscriptions to cloud software. In the suppliers category, this includes everyday operational needs.

Invest in Cloud Software Like Acumatica ERP?

Talk to your CPA firms and get this answered for you if the allowance for Cloud software such as Acumatica Cloud ERP can be used towards PPP-2. Cloud ERP Software is 100% necessary for many organizations to maintain business continuity during pandemic lockdowns, enabling remote workforce and social distancing measures.

How Can InfoSourcing help?

We are Cloud ERP Consulting firm and we can assist our clients by providing rapid deployed Cloud ERP Software in next 8 to 20 weeks time frame so your Company can maximize the benefits of PPP loan and also migrate to Cloud, reach out to our cloud experts and we will be happy to guide you through these times.