President Biden’s Changes to the Paycheck Protection Program are a Big Win for America’s Small and Minority Businesses
On Monday, February 22nd, the Administration announced several reforms to build on this success by better connecting the PPP to our small businesses and others that have been left behind in previous capital relief efforts.
Specifically, the Administration will:
- Institute a 14-day period, starting Wednesday, February 24, 2021, during which only businesses with fewer than 20 employees can apply for relief through the PPP.
- Help sole proprietors, independent contractors, and self-employed individuals receive more financial support. To address this problem, the Biden-Harris administration will revise the loan calculation formula for these applicants so that it offers more relief and establish a $1 billion set aside for businesses in this category without employees located in low- and moderate-income (LMI) areas.
- Eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the PPP.
- Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the PPP.
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
The time is now! If you are in need of a forgivable loan to cover your operating costs, we encourage you to apply for the PPP. Do not wait! These federal loans can be forgiven if businesses follow the guidelines accordingly. Many businesses are eligible to apply for a second drawdown, even if you received PPP funds from the first round.