With a new round of Paycheck Protection Program (PPP) loans set to be made available soon, the Biden Administration announced that it is limiting applications for the first two weeks to small businesses (those companies and firms with less than 20 employees) in an effort “to help businesses, nonprofits, and faith-based organizations recover from the impacts of COVID-19.”
The two-week preferential window for small businesses begins on Wednesday, February 24 and ends on Wednesday, March 10. After March 10, PPP loans will be made available to the broader public. According to the Small Business Administration’s (SBA) press release, the agency also seeks to strengthen the PPP by implementing various changes to the program’s requirements. Specifically, 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;
- 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.
Whether and when to apply for a PPP loan is a critical question that all prudent businesses should contemplate. Contact Flynn Giudici to discuss whether a PPP loan makes sense for your business.