Paycheck Protection Program Update
Yesterday the Biden-Harris Administration and the SBA announced steps the agency is taking with the Paycheck Protection Program (PPP) to further promote equitable relief for America’s mom-and-pop businesses.
With the exception of the first item, the following will start next week:
- Starting tomorrow, Feb. 24, the SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
- The 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.
- The agency will eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
- Also, the SBA will 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.
- 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.
Our partners at the Economic Development Collaborative are available to assist business owners, by contacting 805.409.9159 (English) 805.309.5874 (Spanish)