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What Are Examples Of Covered Supplier Costs For Ppp?

What Are Examples Of Covered Supplier Costs For Ppp?

Are you familiar with the Paycheck Protection Program (PPP)? It’s a government initiative aimed at supporting small businesses in the wake of COVID-19. Many companies have received loans through this program, but what exactly can those funds be used for? In this blog post, we’ll explore some examples of covered supplier costs for PPP loan forgiveness, so you can make sure your business is utilizing these funds effectively and efficiently. Let’s dive in!

What Is A Covered Supplier?

A covered supplier is a company that has been designated by the government as a necessary party to provide certain goods or services. Covered suppliers are usually required to meet specific quality and safety standards, and they may be required to use specific production methods or produce goods in limited quantities.

Covered suppliers can be important when it comes to meeting regulatory requirements, but they can also lead to higher costs for businesses. For example, a covered supplier might be required to use specific materials or produce goods in a particular manner. This can add costs associated with obtaining the necessary supplies or manufacturing components, and it can also increase the cost of producing the product.

When evaluating whether or not a covered supplier is right for your business, it’s important to consider both the benefits and the costs associated with using them.

What Are The Types of Supplier Costs Covered?

The types of supplier costs that are covered under PPPs can vary depending on the specific terms of the contract. Generally, these costs can include project management fees, construction materials and equipment, labor, and engineering services.

Some common supplier costs covered under PPPs include:
-Project management fees: These fees typically cover the cost of overseeing a project from start to finish. They can include salaries for project managers as well as other overhead costs associated with running a successful project.
-Construction materials and equipment: These items may be needed to build or upgrade a facility. Supplier costs for these items can include hiring contractors, purchasing construction materials, and paying for specialized expertise.
-Labor: Labor charges can go hand in hand with supplier costs related to construction projects. This includes not just skilled workers but also contractors and subcontractors who are involved in the overall undertaking. Costs associated with labor may include wages, bonuses, benefits, and overtime pay.
-Engineering services: Engineers may be hired to provide assistance during the course of a construction project. This may include providing design advice, conducting inspections, or even serving as consultants during construction phases.

What Are The Supplier Costs That Are Not Covered?

Covered Supplier Costs for PPP

There are a number of different types of supplier costs that are typically not covered by a PPP agreement. These include costs associated with the procurement process, such as advertising and interviewing potential suppliers. Additionally, some supplier costs related to the actual construction project, such as equipment rentals or materials purchases, may not be covered.

PPP agreements typically outline specific vendor requirements and contract terms that must be met in order for the supplier to be considered for future work. If any of these conditions are not met, then the supplier may be disqualified from future bids. It is important to review the terms of the PPP agreement carefully in order to understand which costs are covered and which are not.

How Much Does Ppp Cover Supplier Costs?

When it comes to Ppp, there are many different types of costs that can be covered by the contractor. Some examples of covered costs include materials and supplies, job site expenses, and wages. It is important to understand what is included in each category in order to correctly calculate the cost of coverage.

Materials and Supplies: This category includes items like screws, nails, and construction adhesive. The amount that is covered depends on the type of product used. For example, screws are usually covered for a 1-inch quantity per project, but nails are only covered for a 2-inch quantity per project.

Job Site Expenses: This category covers things like parking fees, tolls, and transportation costs. The amount that is covered depends on where the job site is located. For example, if the job site is located in California and there is a toll charged for traveling into the city, then the contractor would be responsible for covering that expense.

Wages: This category includes all related expenses such as payroll taxes, benefits, and overtime pay. Obviously, this category can be complex to calculate due to variances in state laws. However, a good starting point would be to divide total hourly wages by the number of hours worked during the week.


Covered supplier costs can be a vital part of your procurement planning, and it is important to be aware of the different types of payments that suppliers may request from you. By being familiar with the different terms and conditions associated with covered supplier costs, you can better understand what will be included in your overall contract negotiations.

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