Wider Availability Announced for Small Business PPP Loans

On February 22, 2021, the Biden administration announced a new exclusive Paycheck Protection Program (PPP) loan application period for businesses and non-profits with fewer than 20 employees. This application period began on February 24, 2021 and lasts for 14 days. According to the U.S. Small Business Administration (SBA), the goal of this exclusive application period is to “give lenders and community partners more time to work with the smallest businesses.”

The SBA also announced these additional changes to the PPP program that aim to make PPP funds more available to underserved small businesses:

The PPP funding formula has been revised to provide additional support for sole proprietors, independent contractors, and self-employed individuals

Access to PPP loans has been widened by eliminating a restriction on PPP eligibility for small business owners with prior non-fraud felony convictions

Student loan debt delinquency has been removed as a disqualifier to participating in the PPP, thus making PPP funds newly available to many small business owners who have struggled to make student loan payments

Access to PPP funds by non-citizens who are lawful U.S. residents has been ensured by clarifying that these small business owners may use an Individual Taxpayer Identification Number (ITIN) to apply for the PPP

Taken together, these changes to the PPP program will make PPP loans available to many small businesses that might have had trouble applying or qualifying previously.

If you have questions about your eligibility for a PPP loan, or how these changes might affect you, please contact our office. We would be happy to assist you.