On February 22nd, President Biden announced a temporary change to the Paycheck Protection Program (PPP) aimed at helping small businesses. A follow-up release from the U.S. Small Business Administration (SBA) details the following steps that the department has implemented to support small businesses through the PPP process:
- Creation of a two-week period, starting February 24th, during which PPP loan applications will only be accepted from businesses and nonprofits with fewer than 20 employees
- Revision to the PPP funding formula for sole proprietors, independent contractors, and self-employed individuals which will allow them to obtain greater funding
- The new SBA revised formula will calculate the loan amounts based on yearly gross income rather than net profit. More information about this can be found here.
- Removal of a PPP restriction that barred small business owners with non-fraud felony convictions from participating
- Removal of a PPP restriction that barred small business owners struggling with federal student loan debt delinquency and default from participating
- Allowance for small business owners who are noncitizens but lawful U.S. residents to apply for PPP loans using their taxpayer identification number (ITIN)
For more details, click here to read the SBA release in full.