Blog date: 2-22-21
Changes to PPP to Further Promote Equitable Access to Relief
In the SBA press release Number 21-17 and in a statement from the Biden-Harris Administration on February 22, they announced the priority focus of hard-hit small businesses for the PPP forgivable loans. The program reopened in January with changes designed to better target relief to underserved, smaller businesses and a new rule that allowed businesses with significant losses to apply for second loans.
Here are the key facts from the SBA press release:
- Starting 2-24-21, the SBA and Biden-Harris administration established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
In addition, these four changes will be implemented the first week in March:
- 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 federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers 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.
Check out the press release here:
SBA Press Release Number 21-17
Check out the White House Biden-Harris Administration Fact Sheet:
We’re here to assist and guide you!
Give one of our experts a call at (888) 388-1040 to discuss your situation.
