May 21, 2021
Second Draw PPP Loans Cover Cloud Computing and Business Software
The United States government has approved $284 million in loan assistance for small businesses to ease financial strain due to the global pandemic. Regulations for the loan program were announced this week, and there’s good news for IT providers: PPP round two includes forgiveness for “operations expenditures”, including but not limited to business software or cloud computing services for accounting, inventory tracking, and more.
To qualify for the loans, you must meet the following requirements:
- Must be a business, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization, veteran’s organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization, or eligible nonprofit news organization
- Maintain fewer than 300 employees
- Experienced a loss of 25% or more in revenue in 2020 when compared to 2019
- Received a First Draw PPP Loan
- Expended or slated to expend the full amount of the first PPP loan prior to receiving the second
We recently teamed up with accounting firm SAX and hosted an informational webinar to discuss how businesses can take advantage of this coverage. Here are a few snippets of what we learned.
Supporting IT Expenses with PPP Loans
MSPs that qualify can potentially PPP loans for various IT expenses, including payments for any business software or cloud computing service that facilitates business operations, product or service delivery, human resources/payroll expenses, sales, billing, and accounting functions, and tracking of inventory or expenses.
To hear from the experts at SAX, take a listen to our on-demand webinar, Stimulus Funding During Pandemic Relief to Support IT Expenses.