By: Scott Borsack
As the COVID relief measure makes its way through Congress (the House passed the legislation at 9:20 PM on Monday) heading to certain passage in the Senate and signature by the President, we are finding plenty to cheer about in the Paycheck Protection Program provisions of the more than 5,500 pages which were released on Monday.
Are you having trouble spending PPP loan proceeds on eligible expenses? The list of eligible non-payroll costs have been expanded to include the following
1. Amounts paid for software of cloud computing services that support business operations, product or delivery services, payroll services, human resources, accounting and expense management;
2. Costs related to property damage and vandalism due to public disturbances in 2020 which were not covered by insurance or other reimbursement;
3. The purchase of goods that are essential to the operation of a business or for perishable goods, made pursuant to a contract or purchase order in effect before the covered period
4. Expenditures to facilitate the adaptation of business activities to comply with health and safety requirements promulgated during the pandemic related to sanitation, social distancing or any other worker or customer safety requirement. This may include physical barriers, drive through windows, air pressure, ventilation or filtration systems, or personal protective equipment
Don’t forget that you still need to spend no less than 60% on eligible payroll expenses.
Scott Borsack is a partner with Szaferman Lakind and chair of the Business Department. To contact Scott please email him at email@example.com or call 609.275.0400.
Please note that the content of this blog is provided for information and education only. Nothing stated herein is intended to create an attorney client relationship or to constitute legal advice.