Reforms to Paycheck Protection Program
Great news for small businesses and the self-employed!
In an effort to help small businesses across the country receive additional financial assistance, the U.S. Small Business Administration (SBA) will soon be introducing new reforms and guidelines to the federal Paycheck Protection Program (PPP).
Recognizing that businesses owned by women and minorities had far less access to PPP loans last time, President Biden is casting a wider net this time. And that's good news for "Main Street," according to Forbes. Read it HERE.
According to the following news release from the SBA, the agency will:
- Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This exclusive window opened TODAY (Wednesday, February 24th)
- 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.
For updated PPP information, including forms, guidance, and resources, visit www.sba.gov/ppp and www.treasury.gov/cares.
Read President Biden's words on the subject HERE.