Sean Orick

Obviously, The company should consult with its tax attorney or CPA, but I would not recommend it. While there is some indication employer matching funds qualify as the "payment of any retirement plan benefit" and, thus, are permissible uses of PPP loans, the cost of starting a retirement plan are designated as "settlor expenses" under ERISA because they are thought to benefit the employer more than participants. For that reason, I would not recommend it, but the company should check with its counsel.