New COVID-19 relief package broadens forgivable funds to include HR tech
Though the holidays have come and gone, small businesses may be eligible for a much-needed gift offered by the COVID-19 relief package passed on December 27, 2020. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act or PPP2 Act) allows qualified businesses to apply for first- or second-time financial assistance through the Paycheck Protection Program (PPP). The new legislation has broadened its definition of allowable funds to include software and cloud computing services.
The Economic Aid or PPP2 Act includes many eligibility requirements. Generally speaking, borrowers can receive full loan forgiveness if at least 60% of their PPP loan is spent on qualified payroll costs, leaving the remaining 40% for other expenses.
Notable new areas of allowable/forgivable expenditures include:
Operations – Software or cloud computing services related to business operations, including those that facilitate human resources (like our separation management platform, for example)
Property Damage – Damage caused by vandalism or looting due to public disturbances in 2020 and not covered by insurance/other compensation
Suppliers – Essential goods purchased pursuant to a contract, order, or purchase order before the covered period or, for perishable goods, before or at any time during the covered period
Covered Worker Protections – Expenses to comply with established COVID-19 requirements or guidance issued by the CDC, HHS, or OSHA since March 1, 2020 (e.g., personal protective equipment (PPE), barriers, facility modifications)
This expanded application of funds enables small businesses to invest in technology to improve and modernize business operations. As the virus continues to surge, many employers have been forced to consider the difficult decision of downsizing. Our analytics-driven risk management platform can streamline workforce reductions, yielding long-lasting cost savings and peace of mind. At a time when the world around us is chaotic, a smooth separation process can create a positive experience for employers and employees alike.
Though COVID-19’s toll has been detrimental, it has also created opportunities for innovation and adaption, qualities that will be beneficial post-pandemic. To see how you can improve your separation process, request a demo of Onwards HR.
