Can Small Businesses Use PPP Funds to Enhance Business Infrastructure?
As a result of the global pandemic, 2020 was a hard year for many businesses. Quite a few small businesses were forced to cut expenses as much as possible just to remain operational. Employees and leadership alike transitioned to novel working environments in order to adapt to changing circumstances and prevent disruptions to business. With a new year and a vaccine, many people claim that they can see a light at the end of the tunnel. As sales rebound, organizations look to new and exciting ways to distinguish themselves from the competition.
If 2020 taught us anything, it was to utilize cloud-based IT services and computing power as a way to increase sustainability and convenience, no matter the size of the company. Some businesses took advantage of PPP (Payroll Protection Plan) loans in 2020. If your organization was not among this group, never fear! The government has approved funding for a new round of PPP. Take the time to understand how these funds can be utilized to upgrade your company’s IT infrastructure.
Cloud-Based Software Allowance Included in Latest Round of PPP Funds
With the approval of the most recent round of Small Business Administration (SBA) funds, doors started swinging open for your business. The first round of PPP funds was designed for use in funding payroll, but new funds are targeted towards growing and expanding businesses. Now, with the latest round of allowances, companies can take advantage of the opportunity to enhance security features and boost competition while the economy rebounds.
Thanks to the latest PPP guidelines, businesses can now include operational expenditures like business software or cloud applications as items eligible for funding. Even if you took advantage of the first round of PPP funds, you can seek additional funds in the latest round. Your IT infrastructure will benefit by gaining increased flexibility and workability.
How Should You Leverage PPP Funds for Your Business?
If you don’t understand whether PPP funds should be used to cover immediate business costs while you continue to make cuts to long-term items, shift your thinking. Your business may benefit more overall by upgrading your IT infrastructure. Researchers identified more than 1 million cybersecurity threats leveraging Covid-19 fears in the first half of 2020, with a 2,000% increase just in the month of March. Cybercrime continues to increase while companies adjust to the new normal of remote work scenarios. IT infrastructure is therefore very important to provide secure and reliable connectivity for staff.
Equipment failures, security breaches and access issues cause companies to lose time in the ability to operate effectively and efficiently and often translate into lost business. Customers expect vendors to deliver outstanding services and products quickly and conveniently. Spending the time and money to upgrade your systems with the newest advances in IT and communications infrastructure tools helps both your clients and your workforce while still maintaining the security of sensitive data and business applications.
How do Businesses Apply for the Latest Round of PPP Loans?
Most companies that qualified for funding on the first round of PPP loans will also be eligible for this most recent round of approved funds. Small businesses are even able to convert funds from a loan to a grant that does not need to be repaid as long as the business follows certain stipulations and paperwork is completed in a timely manner.
The most recent round of funding does not come without limitations on the way the PPP funds can be leveraged to support your IT infrastructure. Your business can use no more than 40% of the total funds for investment in cloud-based services or software. The remaining 60% can be applied to payroll expenses for the business. Companies must also:
- have a written plan in place for funds from the initial PPP, or the company must have exhausted those funds
- have fewer than 300 employees to apply for the newest PPP loans
- experience revenue decline by at least 25% in the prior calendar year to be eligible
The latest PPP funding has a streamlined application process. It is now easier than ever for companies to apply. This means you should apply now to avoid a possible increase in the demand and competition for funds.
The Experts at TREYSTA Can Help Maximize Your Technology Infrastructure Investments
TREYSTA understands where to best invest in your IT infrastructure. We have made it our business to navigate the nuances between business and technology leadership and work closely with organizations of all sizes. We want to make sure that you are maximizing your technology investments. You need expert guidance and advice to maximize your investments. Contact our team for a confidential initial consultation before the next round of PPP funding closes in March 2021!
