In the new appropriations bill, that includes Covid relief, there’s a provision for allowed expenses you can take against your PPP loan and one of them is computer related. Meaning that you’ll be able to include our invoices in your expenses if not expended by payroll. There is also a new simplified forgiveness application for loans up to $150,000 and new statutory language making the PPP and EIDL loans not taxable while continuing to provide expensing of the items paid with the loan. This is some great news that many of us have been waiting for.
Good news too for those of you hardest hit. If your income is more than 25% down, you are eligible for another forgivable loan.
Additional Eligible Expenses • Covered operation expenditures 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
Small Loan Forgiveness Simplified Forgiveness Applications • Loans up to $150,000 – One page signed attestation of compliance – No complex figures or computations required – No documentation submitted – Three year record keeping requirement
Second Draw Loans Basic General Eligibility: – Any business concern, nonprofit, vet. organization, Tribal business, eligible self-employed individual, sole proprietor, independent contractor, or small agricultural cooperative
– Not more than 300 employees
– Not less than a 25% reduction in gross receipts in the first,
second, third quarter in 2020 compared to the same
quarter in 2019
Keep in mind that I’m just an IT person and not a financial or legal advisor. Before you take action on any of the items above be sure to consult the professionals. This bill is a behemoth and I don’t envy those of you that are lawyers and accountants that have to read the thing and have to figure out what it means for the rest of us.