President Biden announced important changes to the PPP, including a two-week window for businesses with fewer than 20 employees.
Important changes to the Paycheck Protection Program (PPP) announced this week by the White House are designed to target more funding toward the smallest of small businesses.
Some of the PPP updates:
- Institutes a 14-day period, starting Feb. 24, during which only businesses with fewer than 20 employees can apply for PPP.
- Provides more support for sole proprietors, independent contractors, and self-employed individuals by adjusting the loan calculation formula to offer more relief for applicants in these groups. At this time, due to changes made through administrative action, new calculation formulas are not retroactive.
- Eliminates an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining PPP.
- Provides 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.
See the White House Fact Sheet for more information on the announcement.
More guidance is expected from SBA and other sources about the changes. ASBTDC is closely monitoring, so reach out if we can help you with your PPP plan of action.
The Paycheck Protection Program ends March 31. To find a PPP lender, go to sba.gov/lendermatch.
For help in understanding your options and determining next steps, contact an ASBTDC consultant at 800.862.2040, or click here to sign up online.
To go directly to the page for Coronavirus (COVID-19) Small Business Guidance & Loan Resources, visit https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.