PPP Round Two: More Than Just Payroll
By now, you’ve likely heard about the SBA’s second round of the Paycheck Protection Program (PPP) being open to businesses…but did you know that this second round of PPP, which went live last month, can be partially used to cover software expenses?
As per the SBA, the second round of PPP includes the ability for recipients to use up to 40% of the loan towards “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.” 1
This may be an excellent opportunity to invest in a business intelligence solution like AgencyStory® that helps leadership improve the speed and quality of decision making, something vital to staying ahead of the curve during these challenging times!As AgencyStory® is designed to help improve your business’s operations, it falls squarely within the definition outlined above. This could be the perfect opportunity for your agency to access this industry-specific business intelligence software to align your leadership team and measurably improve your agency’s organizational agility and operational resilience!
If you already applied for and received a PPP Loan in the first round of funding last year, then the requirements to receive a second round of funding include:
- Must have fewer than 300 employees
- Must have experienced a revenue reduction of 25% or more in 2020, as related to 2019:
- “…gross receipts in any calendar quarter of 2020 were at least 25 percent lower than the same quarter of 2019. Alternatively, compare annual gross receipts in 2020 with annual gross receipts in 2019.” 2
- Note: there are different calculations that can be used for businesses who were only in operation for some quarters of 2019; see How to Calculate Revenue Reduction documentation from the SBA.
- Must have used, or will use, the full amount of your first PPP Loan by the date you expect to receive disbursement of second PPP loan proceeds
- 60% of any second PPP loan proceeds must be used for payroll costs
The last day to apply for (and receive) a PPP Loan is March 31, 2021. Consult with your CPA to find out if you qualify for this second round of PPP, as it could be a great way to not only get federal assistance with your payroll, but also subsidize the adoption of a solution like AgencyStory® to enhance your competitiveness and emerge stronger as the economy recovers!
To find out more about AgencyStory®, fill out the form below!
About Vanessa Vollum Edwards
Hailing from Portland, OR, Vanessa graduated from university with a degree in Philosophy. An amateur helicopter and fixed wing pilot since age sixteen, she began her first career as a pilot for LifeFlight. Upon completing her MBA, Vanessa was recruited by a fellow classmate into becoming the CFO/COO for a digital agency experiencing rapid growth. The agency was acquired in 2010. Over the last decade, Vanessa has built a strategic consultancy focused on empowering agency principals, accelerating growth, increasing profitability and deploying agency management software. She is a founder of AgencyStory®, a patent pending curated analytics solution for the marketing services industry.
After working with over 150 leadership teams over the last decade, both agency and in-house, CPI began to notice a consistent pattern of challenges impairing growth and negatively impacting culture. AgencyStory® was developed to empower agency leadership and de-risk their decision making. Finally, a solution that helps you answer your most pressing business questions!
1 Source: Page 49, SBA: Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act
2 Source: Page 3, SBA: Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide