Important PPP Application Update For Small Business Owners

Beginning tomorrow, February 24, there will be a two-week period during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans. This is per an announcement from the White House.

In addition to the two-week application rules, the administration is also promising to:

• Change the PPP loan calculation formula to help sole proprietors, independent contractors, and self-employed individuals receive more financial support. An additional $1 billion will be set aside for businesses in this category that don’t have employees and are located in low- and moderate-income areas. Further details are expected.
• Allow small business owners with prior nonfraud felony convictions to obtain a PPP loan.
• Allow small business owners who are delinquent on federal student loan payments to secure a PPP loan.
• Allow noncitizen small business owners who are lawful U.S. residents to use individual taxpayer identification numbers (ITINs) to apply for a loan.
• Update key areas of SBA websites to allow applicants to more easily find resources for understanding relief options and complete applications.

The application window for the current, $284 billion iteration of PPP is scheduled to close March 31, 2021. If you’re considering applying or have questions about the PPP and/or qualification restrictions during this two-week time period, please reach out to us for guidance.

And, as always, don’t forget about our weekly webinars! Each and every Thursday we meet for a live, interactive webinar to discuss PPP and other issues facing business owners during this unprecedented time. Have a specific question in mind for your company? We’ll answer it live. Register now!