February 22, 2021
Changes Announced to PPP
In an effort to make the Paycheck Protection Program (PPP) more accessible to underserved borrowers, President Biden has announced some modifications to the PPP aimed specifically at small businesses.
These modifications include:
- There will be a two-week period starting Wednesday, February 24, during which only businesses with less than 20 employees can apply for loans.
- The way loans are calculated for sole proprietors and the self-employed will be revised in order to aid businesses without employees. Additionally, one billion dollars of PPP funds are being set aside for businesses without employees in low and moderate-income areas.
- The SBA will be eliminating an exclusion that currently prevents business owners with non-fraud felony convictions from accessing the program and another that prevents business owners who are delinquent on federal student loans from accessing the program.
- Non-citizen small-business owners who are lawful U.S. residents will now be able to apply for loans using individual taxpayer identification numbers.