The Economic Aid Act, which was part of the Consolidated Appropriations Act, expanded the definition of non-payroll expenses that are eligible for PPP forgiveness to include operations expenditures. These newly added categories are set to help restaurants in a large way.
RASI Compliance Director, Brian Smith, has compiled the top questions about the new benefits for restaurants and what they need to know for loan forgiveness!
Are the changes for PPP 2nd draw only?
The changes related to non-payroll expenses are for both the PPP 1st Draw and the PPP 2nd Draw.
What if a borrower has already applied for forgiveness for a PPP 1st draw loan?
If a borrower has already applied for PPP 1st Draw Forgiveness, they, unfortunately, cannot amend their application. Whatever was filed with their bank for forgiveness is what will be taken into consideration, so this new change doesn’t apply to the borrowers who’ve already applied for forgiveness.
Why are non-payroll costs so important to the PPP forgiveness process? Why wouldn’t a borrower just use wages = to 100% of their PPP loan?
Os custos que não são de pagamento são importantes porque reduzirão os custos da folha de pagamento. The reason reducing payroll costs is important is because, for 2021, operators can claim the ERTC and the PPP in the same quarter or quarters. So, if the operator is planning on just using 100% Payroll Cost, they’re not going to leave as many wages as they could for the ERTC. O objetivo final é maximizar o perdão dos créditos de acidente da ERTC, bem como do PPP. industry?
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Which changes to the definition of nonpayroll costs will have the biggest impact on the restaurant industry?
The largest impact on the restaurant industry is what the SBA and Treasury refer to as Covered Supplier Costs. The definition of a Covered Supplier Cost is “a good that is purchased from a supplier of that good that is essential to your business.” Portanto, em um restaurante, um exemplo de um custo de fornecedor coberto seria o seu inventário, o que é essencial para o negócio e agora se qualifica como um custo que não é de pagamento. É claro que a compra deve ser concluída por meio de um pedido de compra ou contrato, portanto, apenas a compra normal dos operadores da Sysco ou dos EUA ou de qualquer outro fornecedor do qual eles recebem seus alimentos. payroll expenses, or accounting for business expenses.
Other Important PPP Non-Payroll Definition Changes:
- Covered Operations Expenditures: Payments for any business software or cloud computing service that facilitates business operations — for example, the processing, payment, or tracking of payroll expenses, or accounting for business expenses.
- Despesas de proteção do trabalhador cobertas: Sistema de ventilação ou filtração do ar; uma barreira física, como um guarda de espirro; PPE*Equipamento de Proteção Personal*.
*NOTA: Todas as despesas precisam ter sido incorridas ou pagas durante o período coberto. Pedidos
What type of documentation will be needed to claim non-payroll expenses on the PPP forgiveness application?
- Copy of Invoices
- Copy of Purchase Orders
- Recebimentos
- Cheques cancelados
- Declarações da conta
Qualquer um dos itens acima será aceitável documentação para verificação, desde que todos os pagamentos fossem feitos durante o período coberto. É importante lembrar que apenas as despesas pagas dentro do período coberto e apenas as despesas incorridas no período coberto se qualificarão - nada fora do período coberto será aceito.
How long should an operator’s expense records be kept?
The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full.
