The global COVID pandemic has disrupted business in nearly every industry. On January 8th, the SBA and US Treasury announced the reopening of the COVID Paycheck Protection Program (PPP). The second-round PPP Loans focuses on small to medium businesses with verifiably declining revenue that may have already used their first round of PPP funding to remain in business. While much of the second-round loan covers the same items covered by the first, one key difference is the government is acknowledging that SMBs will need more than just payroll costs and rent covered in order to keep their doors open. They will also need to invest in cloud technologies that support the continuation of a remote workforce and also betters it. This next round of PPP loans addresses the need for small businesses to continue to invest in and adapt their technology and systems to the cloud.
For years, small to medium print businesses have focused on investing in the latest print technologies and new machines. But print is a high-volume, low-margin industry. When you’re operating on a 1-3% profit margin, big problems can cost you.
Efficient management is critical to business survival — well before a global pandemic. The second-round PPP loan can be used to upgrade software that will help cut costs, shore up estimating, reduce wastage rates, improve inventory management, increase production efficiencies, and crack down on cash flow. This is an opportunity to focus on increasing the bottom line in ways other than 4-color builds and dots per inch.
Download all the details and facts you need to know about this government funding expansion, including who qualifies for it, the benefits, inclusions, and next steps you can take not only to survive in the short term but thrive in the long term.
Download a PDF version of the FAQ: COVID PPP Loans Round 2 and Cloud Technology Coverage
What can Wye Print provide with funding from this round of COVID PPP loans?
Our entire Print MIS suite, PrintVis, is a cloud-based ERP and management information system that is covered under the second round of PPP loans. There is also an additional forgiveness area included for covered supplier costs. Tax advice from a qualified professional is suggested to maximize the funding.
Should I use a PPP loan for IT and cloud technology investments?
Yes! There are two major benefits:
1. If you have to pay for or need a new ERP system or upgrade, there is no better loan rate than 1% flat for 5 years.
2. There is a high chance you can get this loan forgiven completely — and deducted!
As it becomes clear that COVID-19 isn’t going anywhere and stay-at-home recommendations will remain in place, many SMBs are recognizing the need to upgrade their software. The expansion of PPP loans to cover this challenge is a step in the right direction for many SMBs looking to stay the course through the pandemic. In a time riddled with external stress factors, utilizing the PPP loan to upgrade your cloud technology allows you to improve the lives of those working in your print shop by lessening stress and empowering them to succeed, which helps drive both top and bottom-line performance – all with loan rates that can’t be beat.
The first step to taking advantage of the expanded PPP coverage is to apply for the loan before the deadline. The easiest way to do this is by using the same lender as you did for the first round of PPP loans. If you didn’t apply for the first round, start with your bank.
From there, contact the cloud technology experts at Wye Print to learn more about how the best cloud-based Print MIS can maximize your PPP and set your business up for success as the demand for remote-forward operations grows.
Wye Print is changing the game in the print industry by deploying modern business applications that connect all parts of the printing plant together from sales and estimating through the management of subcontractors and shipping, and providing the kind of training and support you need to truly leverage the value of your technology – no matter where the employee is located.