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PPP Updates – Time Sensitive

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On Monday, February 22, President Biden announced the following changes to SBA’s coronavirus relief programs to ensure equity:

The main key change to PPP is that from Wednesday, February 24th through Wednesday, March 10th, only businesses and nonprofits with fewer than 20 employees and sole proprietors can apply for PPP loans in an effort to reach the smallest businesses.  This will give lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31, 2021.
SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before. One update is the the way loans are calculated will be revised so businesses without employees get more relief. The previous calculation – based on payroll – made the program ineffective for sole proprietors and independent contractors, including many businesses of color. The Biden administration also will set aside $1 billion in PPP loan funds for businesses without employees in low- and moderate-income areas.
The four changes to the PPP, SBA will:
  • 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 student loan payments by eliminating student loan debt delinquency as a disqualifier 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.
A critical goal from Congress for the latest round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides.  For more info., click on SBA PPP.
Get FREE Help With Your PPP Loan! If you are a minority-owned business or women-owned business, you can get free technical assistance on how to use PPP funds and apply for PPP forgiveness by signing up with the link below or emailing them at EquitablePPP@gmail.com. Help will be available in English, Spanish, Chinese, Haitian Creole, and Portuguese.
Click on PPP Access.

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