PPP for Outsourced IT!

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Many small businesses have received and are depending on the Paycheck Protection Program to sustain their business during the Covid-19 Pandemic. 

In order to receive forgiveness for a Paycheck Protection Program or PPP Loan, the small business must spend the majority of the funds on payroll, rent, or utility expenses.

Many of these small businesses do not have their own IT support team.  Instead they outsource the management of technology to IT Consultants or Managed Service Providers.  

Small businesses that outsource their IT services are unable to apply these payments to their loan forgiveness.  While these services have become necessary utilities for the small businesses, they do not qualify as utility expenses under the CARES act.

President Trump and the US Congress should amend the language of the CARES act to allow the following two changes.

1) Allow businesses to include fees for outsourced IT services, as long as the service provider is an American company that does not outsource jobs overseas.

2) Allow IT Service Providers to include expenses they incur while providing IT support, security, or backup and disaster recovery for their clients to their PPP Loan Utility Expenses

Outsourced IT providers have been deemed to be essential.  All US businesses are dependent on secure, reliable, and fast computer networks.

Please make this change to keep our US based Outsourced IT providers strong!