The Paycheck Protection Program (PPP), as enacted under the Coronavirus Aid, Relief and Economic Security (CARES) Act, is available as one of the U.S Small Business Administration (SBA) loan to help businesses during the Coronavirus (COVID-19) crisis.
One specific area that may apply to small healthcare providers who qualify for the federal PPP loan program is as follows:
The SBA Paycheck Protection Program Loan Forgiveness Application under Section 2b provides that eligible non-payroll costs include business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020. Rental expenses for linens and other textiles, which are personal property, may be eligible to be included in the Section 2b costs.
It is important to note that the SBA has not provided specific guidance on whether rent or lease payments will be limited to specific categories of personal property leased by a business. As a word of caution, we would recommend that customers discuss inclusion of these expenses in their forgiveness application with legal and accounting advisors as well as the lending institution who will be responsible for receiving and approving applications. *
*This customer advisory is intended to be informational only and does not constitute legal or accounting advice. You should consult with your legal and accounting advisors before concluding on your ability to obtain forgiveness with respect to any expenses.
Details about the PPP can be found on the SBA website at: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.