Starting Feb. 24: Smallest of Small Businesses To Be Prioritized For PPP Loans
On Monday, the U.S. Small Business Administration announced the following regarding the Paycheck Protection Program. The announcement's press release and more information is available here.
The SBA will:
Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
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 federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers 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.
The 14-day exclusivity period will start on Wednesday, February 24, 2021 at 9 a.m., while the other four changes will be implemented by the first week of March. The SBA is working on the program changes and will communicate details throughout this week.