17) Does vehicle gasoline qualify as transportation under “utility payments”?
The CARES Act allows for transportation costs. The only SBA guidance we have as of now on this point is for self-employed individuals. This guidance states that gas used for driving a business vehicle is a forgivable use of PPP loan proceeds. This suggests gas expenses and expenses from the standard mileage allowance may be permitted, but we need more definitive guidance.
18) Are car or equipment lease amounts eligible for forgiveness?
According to the CARES Act, only rent under a “covered rent obligation” is eligible for forgiveness. A covered rent obligation means rent obligated under a leasing agreement in force before Feb 15, 2020. This suggests that payments on a car or equipment lease may be permitted, but we need more definitive guidance. Clearly, without a pre-02/15/2020 “lease” in effect, the rent attributable to any lease will not qualify for forgiveness.
