Is PPP loan money forgivable when used to purchase vaccines?
No, it’s quite clear that vaccines are not covered by PPP loans.
To follow up, can the $10k EIDL be used for vaccines? Do you have any other advice for assistance to purchase vaccines? Thank you Chip
Yes, I believe that is exactly what the EIDL can be used for. But first and foremost, pick up the phone and call your GPO and get the best terms being offered by the pharmas right now. I think they are just about all offering extensions, etc., at this point.
Does the PPP loan money have to be used up in 8wks? I’m asking because our landlord offered 50% reduction in rent for the next 4 months, but I applied using our full rent amount. So, would I be able to continue to use this loan money to pay the 3rd and 4th months’ rent?
Sorry if this sounds like a question that was asked already. I asked it at the webinar #4 close to the end but didn’t get to look for the answer before the webinar was over.
Great question!! I hope Chip or someone else jumps in.
An idea for you would be paying full rent for 2 months when PPP loan is in place and no rent for 2 months. Nuanced, but landlord would get the same amount of money and in effect get paid up front. This keeps payments status quo during PPP program and you are fortunate to have landlord that is helping out down the road. These are going to be the type of questions we are all asking ourselves, and these are the type of questions the government is going to be asking us when we apply for forgiveness. Accountants are in for a tough job.
Pfizer is offering a 30 day extension on due dates and maintaining the discount. Sanofi is offering to not pursue collections on past due and and suspended accounts. They are also offering to accept partial payments with the 2% discount but any amount not paid will lose the discount. At least that’s as of today.
The PPP loan forgiveness is related to rent payments within the specified 8 week period. I’d suggest asking the landlord to defer the offered discount during that eight week period.
As a side note, if your 8 week period is stretched over three given months (April 15 - June 15), it MIGHT be possible to get three months of rent (assuming the feds allow such expenses on a “cash basis” versus accrual). Jury is still out on whether that would be permissible…
The amount that you apply for on the PPP loan is based only on your payroll. To be exact it is 2.5 times your average monthly payroll. You may use a maximum of 25% of the complete loan on Rental expenses and/or utilities.