A House bill introduced this month would allow small businesses who have received Paycheck Protection Program (PPP) loans to use those funds to procure cloud-based solutions.
H.R. 8620, introduced October 19 by Rep. David Scott, D-Ga., would allow PPP recipients to receive loan forgiveness if they use the funds for cloud-based solutions that support logistics, payroll, or billing by making them “covered operations expenditures” under the program. The bill would modify both the CARES Act and the Small Business Act to ensure that businesses could fully procure the cloud products included under the definition of reimbursable expenses.
“With more than half a million Georgians out of work, it is critical that Congress prioritize policies that both support small businesses and keep our citizens safe. As the public health crisis forces business owners to adjust to public safety guidelines, this legislation will provide a vital lifeline for millions of small businesses across the country,” said Scott.
Scott’s legislation received the support of the Electronic Transactions Association (ETA), who noted the need for small businesses to maintain their cloud-based systems.
“ETA applauds Rep. Scott’s leadership in making it possible for small businesses to apply computer-related and software expenses to Paycheck Protection Program loans. By including these types of expenses, Congress recognizes the important role of technology solutions for companies in Georgia who keep the payments industry running,” said Scott Talbott, senior vice president of the ETA.