Paycheck Protection Program (PPP)
Paycheck Protection Program (PPP)
Key Features for Existing PPP Loans
Additional Eligible Expenses
Forgiveness previously had been predicated on expenses incurred or paid for payroll costs, mortgage interest, rent or lease costs and utilities. For any borrower who has not yet filed a forgiveness application, they may now include:
- Covered operations expenditures – which include business software or cloud computing services, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses.
- Covered supplier costs – payments made to a supplier under a contract or purchase order for goods that are “essential to the operations of the entity” (leaving the definition of “essential” to the borrower). Note that the contract or purchase order must have been in place prior to the covered period of the existing PPP loan unless it was for perishable goods, which could be in place at any time.
- Covered worker protection expenditures – any operating or capital cost incurred to comply with safety or sanitation requirements put in place between March 1, 2020, and the end of the national emergency (once declared). Such costs can include establishment of a drive-through window facility, new ventilation or filtration systems, physical barriers, expanded space or other assets relating to compliance with government requirements.
- Covered property damage costs – for costs related to civil disturbances during 2020 that were not covered by insurance.
- Payroll expenses – now expanded to include employer payments for group life, disability, vision or dental insurance, which were previously excluded.
In short, there are many more business expenses that may be used for forgiveness support with these new, expanded eligible expenses.
Where do I go for information or question regarding loan forgiveness?
Important reminders
- Stay safe from scammers: Prevent fraud due to release of PPP program loan data - In an effort of transparency, the SBA, in consultation with the Treasury Department, released a spreadsheet of data that included information about PPP loans at the loan level. This spreadsheet includes the names of business recipients, their associated addresses, and lending partner.
This may result in the “bad guys” being able to easily target PPP loan recipients by phone or online, posing as someone from the bank. If you receive a suspicious communication regarding your PPP loan and are unsure of how to proceed, contact us immediately at [email protected] or 808-544-6865.
- SBA Alert: The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing. Please see the SBA Fraud Alert for more information.
