Home COVID-19: Resources and Discussions for Small Businesses
Announcement:: Please see our new COVID-19 category where small businesses can engage with other business owners and experts to share best practices, information and other resources that will help us all get through this crisis.

PPP2 covered supplier costs

Do covered supplier costs include raw materials for construction projects if the materials were under contract or on a purchase order prior to the loan period?

Comments

  • Brian_SBMBrian_SBM Vice President, Entrepreneurship Administrator admin

    Yes. The law states that supplier costs include any purchase order "in effect at any time before the covered period with respect to the applicable covered loan."
    However, note that the supplier costs must also be: "essential to the operations of the entity at the time at which the expenditure is made."
    So, as long as these construction costs were essential to the business' operations, you should be OK to claim them as a covered expense.

Sign In or Register to comment.