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Eligible For a PPP Loan in Round 2? Forgiveness Could Pay for ServiceTitan

User IconMike Persinger
Clock IconMarch 4th, 2021
Glasses Icon3 Min Read
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If your company is applying for a Payroll Protection Plan loan in Round 2 and figuring the amount to request that is eligible for loan forgiveness, there’s potentially good news. Among the changes to the program is an addition to the definition of expenses eligible for reimbursement in Round 2 that could benefit some ServiceTitan customers.

Now on the eligibility list with payroll and benefits costs, rent, utilities and other business expenses, are: “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 of tracking of supplies, inventory, records, and expenses.”

ServiceTitan’s cloud-based software solution for home and commercial services companies does all those things. 

PPP borrowers can have their first- and second-draw loans forgiven if the funds are used on eligible costs, but there are some significant caveats. To be eligible for PPP Round 2, which has the same general loan terms as Round 1, your company must:

  • Have exhausted any funds received in Round 1 on qualified expenses

  • Have fewer than 300 employees

  • Be able to show a reduction in gross receipts of at least 25 percent compared with comparable quarters in 2019 and 2020.

If your company meets those and all other eligibility criteria, the second round of PPP loans is being dispersed now, through participating local lenders across the country. 

While ServiceTitan recommends you consult a financial professional when applying for a loan or figuring your potential reimbursement, the recent addition to the rules could mean your ServiceTitan fees are reimbursable under the PPP.

An exclusivity period for businesses with fewer than 20 employees runs through March 9, 2021. All companies can apply March 10-31, and there’s a chance the deadline could be extended.

The amount reimbursed can’t exceed the amount of your PPP loan, but the software cost could help companies get the full amount of their loan reimbursed if other expenses fell short of that total. 

Companies must calculate the amount they request in the second round, and will be required to provide documentation that the money was spent for eligible expenses. 

Here’s the full list of eligible non-payroll expenses for the purposes of loan forgiveness under the PPP:

  • Covered mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”);

  • Covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in SBA Form 3508 (01/21) Page 3 Paycheck Protection Program Loan Forgiveness Application Form 3508 Revised January 19, 2021 OMB Control No.: 3245-0407 Expiration Date: 7/31/2021 force before February 15, 2020 (“business rent or lease payments”); 

  • Covered utility payments: business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020 (“business utility payments”); 

  • Covered operations expenditures: 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 of tracking of supplies, inventory, records, and expenses; 

  • Covered property damage costs: costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation;

  • Covered supplier costs: expenditures made to a supplier of goods for the supply of goods that are essential to the operations of the Borrower at the time at which the expenditure is made, and made pursuant to a contract, order, or purchase order in effect prior to the beginning of the Covered Period (for perishable goods, the contract, order, or purchase order may have been in effect before or at any time during the Covered Period); and 

  • Covered worker protection expenditures: operating or capital expenditures that facilitate the adaptation of the business activities of an entity to comply with the requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established or guidance issued by a State or local government, during the period starting March 1, 2020, and ending on the date on which the national emergency declared by the President with respect to the Coronavirus Disease 2019 (COVID-19) expires related to maintenance standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19, but does not include residential real property or intangible property. Eligible non-payroll costs cannot exceed 40% of the total forgiveness amount. 


ServiceTitan is a comprehensive home and commercial services business software solution built specifically to help companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000+ contractors across the country.

Ready to learn more about what ServiceTitan can do for your business?  Contact our team to schedule a demo today.

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