What is a utility for the PPP?
The following are all considered forgivable utilities expenses for the PPP:
- Electricity
- Water bill
- Gas
- Sewage
- Telephone (cell phone and landline)
- Internet bill
- Transportation costs
Traditionally, “utilities” normally means electricity, water, gas, and sewage only. But as you can see, the PPP adds the additional categories of telephone, internet, and transportation costs.
What transportation costs are eligible for forgiveness?
The SBA has yet to release guidance on which expenses are included under the category of “transportation.” Currently, our understanding is that eligible expenses for loan forgiveness must fall under transportation utility fees assessed by state and local governments. These are fees paid by businesses based on their use of the trasportation system.
What conditions must be met for a utility cost to be eligible for forgiveness?
All agreements must have been in place prior to February 15th, 2020. Any agreements that began after February 15 would not be eligible for forgiveness.
