Good news! The new Paycheck Protection Program (PPP) guidance issued January 6, 2021 by the U.S. Small Business Administration (SBA) and Treasury expands the eligibility of certain business expenses for loan forgiveness for both first- and second-draw loans. In addition to expanding coverage to include business expenditures related to covered worker protection, such as personal protective equipment (PPE) that help employers comply with federal health and safety guidelines, costs eligible for PPP loan forgiveness now include applicant tracking software under the “covered operating expenses” clause.
“Covered operating expenditures, which refer to payments for any business software or cloud computing service that facilitates business operations; product or service delivery; the processing, payment, or tracking of payroll expenses; human resources; sales and billing functions; or accounting or tracking of supplies, inventory, records, and expenses.” (Journal of Accountancy)
For those already using cloud-based recruitment software in their organizations, expanded expense forgiveness is a welcome relief. In the wake of COVID-19, recruiting has gone digital. Cloud-based applicant tracking software allows recruiters the flexibility to effectively source, assess, and hire great talent without ever meeting candidates face-to-face. Businesses can now include their critical recruitment technology expenses incurred during their chosen covered period as eligible covered operating expenditures in their PPP loan forgiveness calculation.
Those without an online recruitment solution may now consider evolving hiring practices to meet the new standards. As more people turn to hiring in the cloud, and with the benefit of PPP loan forgiveness on second draw loans, it’s never been a better time to evaluate applicant tracking software.
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