TWO WEEKS FOR SMALL BUSINESSES TO APPLY FOR PPP WITH SBA
On Monday, February 22, President Biden and the U.S. Small Business Administration (SBA) announced changes to the Paycheck Protection Program (PPP) to assist small businesses. The SBA established a 14-day loan application period exclusively for businesses and nonprofits with fewer than 20 employees. It is anticipated that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31.
To reach the smallest businesses, SBA will offer Paycheck Protection Program loans to businesses with fewer than 20 employees and sole proprietors only from Wednesday, February 24 through Tuesday, March 9, 2021.
SBA.gov also announced four additional changes to open the PPP to more small businesses. SBA will:
- Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
- Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
- Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
If you have any questions or would like more information, please do not hesitate to contact us.