While small business leaders are preparing applications for the federal Paycheck Protection Program during the COVID-19 pandemic, it is important to make sure you include the cost of maintaining your employee benefits in your loan request.
The Paycheck Protection Program is clear that health benefits are part of payroll costs and therefore qualify for the forgiveness component of the loan. We believe the important coverages that supplement health insurance, such as disability, dental, critical illness and others also qualify as group health care benefits, since states typically regulate them as health insurance. We have asked the Small Business Administration to clarify this point.
