The Biden-Harris Administration has made a number of changes to the way in which the Small Business Administration (SBA) will administer the Paycheck Protection Program (PPP). The changes are targeted to promote equitable relief for some of the country’s smallest businesses.
14-Day Window for Loans to Smallest Businesses Only
Starting on Wednesday, February 24, only businesses and nonprofits with under 20 employees will be able to access PPP loans for 14 days. The administration will also push to ensure as many qualifying businesses take advantage of this exclusive window as possible.
The remainder of the changes will take effect in early March and include:
- Changes to PPP funding formulas to ensure that sole proprietors, independent contractors, and self-employed individuals receive more financial support.
- Elimination of an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
- Elimination of 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
- 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.
State Treasurers are encouraged to work with partner agencies and stakeholders within their state to spread the word on this week’s changes to the PPP.
