Changes to Paycheck Protection Program Designed to Increase Equitable Access to Relief
In an effort to provide relief to small businesses impacted by the coronavirus pandemic, President Biden announced several reforms this week to ensure the smallest businesses are getting access to the Paycheck Protection Program (PPP) funds they need.
- Starting on Wednesday, February 24th and lasting for a period of 14 days, only businesses with fewer than 20 employees can apply for relief through the Paycheck Protection Program. In a statement made by the Biden-Harris Administration, “98 percent of small businesses have fewer than 20 employees. They are Main Street businesses that anchor our neighborhoods and help families build wealth.” The hope is that for an exclusive two-week period, lenders can focus on serving the smallest businesses who may have a hard time collecting the necessary paperwork and completing the application to receive PPP funds.
- The loan calculation will be revised to help sole proprietors, independent contractors and self-employed individuals receive more financial support. Also, $1 billion will be set aside for businesses in this category without employees located in low- and moderate-income areas.
- Eliminate restrictions for small business owners with prior non-fraud felony convictions and/or are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program.
- Ensure access for non-citizen small business owners who are lawful US residents by allowing them to use an Individual Taxpayer Identification Number (ITIN) to apply for funds through the Paycheck Protection Program. This will help individuals who have a Green Card or are here on a visa.
If you are a small business owner with less than 20 employees and have not applied for relief through the Paycheck Protection Program, reach out to us today to see how we can help you.