Can You Enhance Your Business Infrastructure with PPP Funds?
In 2020, many companies were simply focused on maintaining their operations. Expenses were cut as much as possible, with business leaders hunkering down and hoping to sustain what looked to be a difficult year. Fast-forward to 2021, and many organizations are seeing renewed sales and opportunities — and looking for news ways to differentiate their business.
Cloud-based IT services and computing power offer a dramatic boost in sustainability and convenience for companies of all sizes. With a new round of PPP (Payroll Protection Plan) funding approved, there are several ways that you can leverage these funds to upgrade your company’s IT infrastructure.
New PPP Funds Provide Allowance for Cloud-Based Software
The latest round of Small Business Administration (SBA) funds comes with new possibilities for your business. Previous funds were targeted towards funding payroll as opposed to business growth and expansion. With the economy continuing to claw its way back, the latest allowances provide ways to enhance security and the competitive nature of your business.
Operational expenditures, such as business software or cloud applications, are now eligible for funding under the latest PPP guidelines. Both businesses that previously received loans and those that are seeking funds for the first time will be able to take advantage of these funds to improve the flexibility and long-term viability of their IT infrastructure.
How Best to Leverage PPP Funds for Your Business
If you’re wondering whether you should cover short-term expenses and continue to cut longer-term costs, upgrading your IT infrastructure may be the best investment that you can make in your business. With cybercrime at an all-time high and companies continuing to struggle with remote work scenarios, providing secure and reliable connectivity for staff becomes a true competitive advantage.
Equipment failures, cybersecurity incidents and a pure lack of access to required business systems can quickly cause companies to lose their way operationally — and to lose sales to their competitors. Customers are looking for brands that are able to deliver exceptional services and products and to do so quickly and conveniently. Access to the latest IT and communications infrastructure tools allows you to provide long-term efficiency and productivity boosts to your workforce while still maintaining a high level of security for your sensitive data and business applications.
How to Apply for the Latest Round of PPP Loans
The majority of companies that were able to gain funding on the first round of PPP funding will also be eligible for this most recent round of approved funds. Small businesses will appreciate the ability to transition these dollars from a loan to a form of a grant that does not need to be repaid as long as certain stipulations are met and paperwork completed in a timely manner.
There are a few limitations on the way the PPP funds can be leveraged to support your IT infrastructure, however. No more than 40% of the total funds can be allocated to this type of investment in cloud-based services or software, with the remaining 60% to be applied to payroll expenses for the business. With only a few additional requirements, businesses should find it easier than ever to ensure that their operations can be maintained even during the pandemic.
- Funds from the initial PPP must be exhausted, or the company must have a written plan in place for their use
- Organizations should have fewer than 300 employees to apply for the newest PPP loans
- In the prior calendar year, revenue must decline by at least 25% to be eligible
Not surprisingly, the government has found ways to streamline the process of applying for these funds. This will make it easier than ever for companies to apply — which could dramatically increase the demand and make the process for funds much more competitive.
The Experts at CIO Advise Can Help Make the Most of Your IT Infrastructure Investments
Understanding where to invest in your IT infrastructure can be challenging and an extremely complex conversation between business and technology leadership. Our team has decades of experience working closely with organizations of all sizes to ensure that you’re maximizing your technology investments. You need the confidence of having a trusted and reliable team of advisors on your side — always looking for ways to boost efficiency in your operations. Contact our team for a confidential initial consultation before the next round of PPP funding closes in March 2021!