As a result of the global pandemic, 2020 was a challenging year for many businesses. Quite a few small companies were forced to cut expenses as much as possible to remain operational. Employees and leadership alike transitioned to novel working environments to adapt t changing circumstances and prevent business disruptions. With a new year and a vaccine, many people claim to see the 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 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 o 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 target growing and expanding businesses. 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 PPP funds’ first round, you could 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 March. Cybercrime continues to increase while companies adjust to the new normal of remote work scenarios. IT infrastructure is therefore critical to provide secure and reliable connectivity for staff.
Equipment failures, security breaches, and access issues cause companies to lose time 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 can convert funds from a loan to a grant that does not need to be repaid as long as the company follows specific stipulations and paperwork is completed promptly.
The most recent round of funding does not come without limitations on how 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 use now to avoid a possible increase in the demand and competition for funds.
The Experts at Envizion IT Can Help Maximize Your IT Infrastructure Investments
Envizion IT 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’re maximizing your technology investments. IT infrastructure can be complicated. It would be best if you had expert guidance and advice to maximize your investments. Contact our team for an initial confidential consultation before the next round of PPP funding closes in March 2021!
