Businesses can keep their workforce employed even amid the global breakout of the COVID-19 pandemic with the chance of succor offered by the SBA-backed Paycheck Protection Program or PPP.
Considering the business requirements for the year 2021, it has been revived with some significant changes. Most importantly, enterprises functional across NetSuite ERP Solutions can make the most of this incentive to ensure robust payroll management. Let’s take a look at the key highlights that prospering and zealous business leaders like you must know to have a lucrative start.
PPP Loan Round 2 includes:
- This time it has narrowed it down to growing businesses as applicants for PPP Loan Round 2 must have fewer than 300 employees unlike PPP applicants, who could have it up to 500 employees.
- It has allowed a broader range of expenses. Earlier, businesses could
spend entirely on the payroll; businesses can now spend 40% of their PPP-2 loan
- Personal Protective Equipment (PPE) for employees and improve their facilities to comply with federal COVID-19 guidelines and ensure business continuity.
- Property Damage due to ‘Public Disturbances’ in 2020 if any.
- Expenditures for ‘Essentials’ to current operations.
- Cloud computing services that help facilitate business operations, including accounting software, monthly cloud subscriptions, and e-commerce tools.
Can Businesses Get Their PPP-2 Loan To Let Off?
Yes, enterprises can have this provision under the covered period of eight to twenty-four weeks, where they:
- Spend at least 60 percent of the funds received on payroll management
- Maintain the same number of full-time employees during the covered period in the same manner as required for the first-draw PPP loan
- Pay their employees at least 75 percent of their usual compensation
Next, business leaders can spend the remaining 40 percent on payroll or other ‘Eligible Costs’ delineated in PPP Loan Round 1 that covered rent, covered mortgage interest, and utilities
And, as an upgrade from the original program, ‘Eligible Costs’ for PPP-2 include:
- Covered operating expenditures that refer to payments made for any business software or cloud computing service that enables:
- Business operations
- Product or service delivery
- Payroll or HR expenses
- Sales and billing functions
- Accounting of supplies, inventory, and records
For the most part, businesses can spend PPP Loan money on accounting solutions or monthly subscriptions to cloud software for covenant business continuity. Moreover, it can be a great reason to evaluate an enterprise resource planning (ERP) system or other business automation tool. Here, if you wish you can connect to accredited and certified NetSuite Partners in India with a global reach if your existing systems are overly complicated to carry out day-to-day processes or hampering your progress.
This PPP Loan Round 2 application can help you analyze if your business is well-suited for an inventive tool. Also, if you move ahead, you can evince at the audit that an updated multi-entity accounting, inventory tool, or supplier cost is incurred for you to be successful.
We all are in this together and looking forward to experience elevating growth trajectory for the year 2021. Although aggrandizing business operations to the cloud entail a certain cost, but connecting to the right resource at the right time implies affordability with technology adaptation.
Being a certified and official NetSuite Solution Provider in India, we believe in rendering uncompromised solutions that has helped us gain global recognition for our exemplary services as well.