The Consolidated Appropriations Act, 2021 provides $900 billion in COVID-19 relief funds to state governments, businesses, and citizens, along with funds for general governance.
Included in this bill is a revised version of the Paycheck Protection Program (PPP), a plan that allows small businesses to take out loans without the typically required collateral and guarantees. This new round of PPP loans is different from the first in many ways, including how they can be utilized in a business. Along with rent, utilities, payroll, and other portions of business expenses, it is also possible for a company to obtain potentially forgivable loans for cloud computing services.
This newly revised PPP2 loan indicates “a payment for 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;”
Businesses can now use PPP loan proceeds for cloud computing services such as:
- Payment tracking and payroll
- Delivery tracking
- General business operations
- Inventory keeping and sharing
- Processing payments
- And many other outcomes (as detailed on page 123 of the new bill)
As was the case with the first PPP loan, small and medium-sized businesses that use cloud computing services and need financial aid can apply for a PPP loan and obtain loan forgiveness.
When Can Businesses Apply for Relief?
Applications for PPP2 have been released. Check with your accountant and/or bank representative for instructions on how to apply. The deadline for application is March 31st, 2021.
Who is Eligible?
Small businesses that received the first round of PPP loans looking for a second loan must:
- Have 300 or fewer employees
- Spent, or plans to spend, the full amount of the first loan before the second loan is distributed; and
- Show at least a 25% decrease in gross receipts in comparable quarters of 2020 relative to 2019
So How Will You Utilize the PPP2 loan?
Many businesses have already made a cloud-based transition by enabling employees to work from home, but if your business has not yet made this transition this very well may be the best time to do it.
For those of you that already have a remote work solution in place, there are more cloud technologies to adopt. Our consultants here at WheelHouse IT can help you optimize these funds and discover the right cloud computing services for your business. Call us at (877) 771-2384 or Book an Appointment on our calendar.