SBA Announces Changes to Paycheck Protection Program (PPP) to Further Promote Equitable Access to Relief
Building on a month of strong results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses. Updates include:
- From Wednesday, February 24th to Tuesday, March 9th (14 days), the SBA will only accept Paycheck Protection Program applications from businesses with fewer than 20 employees.
- 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.
The 14-day exclusivity period will start on Wednesday, February 24, 2021, while the other four changes will be implemented by the first week of March. The SBA is working on the program changes and will communicate details throughout this week.