Could Your Rental Program be Included in your PPP Forgiveness?

Could your rental program be included in your ppp forgiveness?

Please note that this information is not shared nor meant as legal or financial advice. We encourage customers to look into it with their financial institution, lender, or tax professional for specifics as the PPP loan forgiveness information is still being finalized.

Due to COVID-19, many businesses received Paycheck Protection Program Loans, giving them a sense of security and financial assistance during this time. There are many benefits to applying for the PPP including loans to cover payroll costs, rent, employee benefits and your uniform program might be one!

Details and deadlines are still being finalized by the SBA for loan forgiveness applications. There is a lot of information available from the SBA directly and your PPP Lender. Still, we wanted you to be aware that under the SBA Paycheck Protection Program, businesses can apply for loan forgiveness on some nonpayroll costs. This includes employee benefits and other rental agreements, like a uniform or supply rental program. According to section 2a of the Protection Program, customers that had a signed contract stating a rental agreement between the two parties before February 15, 2020, are eligible. And, if uniform rental costs are paid by the employer or loan borrower as part of employee benefits, these may also be eligible for loan forgiveness.

You can read more about the SBA PPP Loan Program & Forgiveness here.

They also have a PDF of FAQs available here.

And we also recommend working with your PPP lender for specific questions. If you have any questions about your current uniform rental program or would like to start one, please reach out to us today.