Important SBA Paycheck Protection Program (PPP) Update
The Small Business Administration (SBA) has announced important changes to the Paycheck Protection Program (PPP)
to create equity, promote efficiency, and reduce fraud and waste. Beginning today, Wednesday, Feb. 24, the SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
This will give lenders and community partners more time to work with the smallest businesses to submit their applications while also ensuring larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31, 2021.
Applications already submitted by lenders to the SBA before the start of the exclusivity period will still be processed. When counting employees, each employee counts as one regardless of whether they are full-time, part-time, or seasonal.
Additionally, the SBA is working to strengthen its relationship with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. As part of these efforts, 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 groups of applicants.
- Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions. Restrictions will remain in place for borrowers with an arrest or conviction for felony fraud within the past five years and those who are currently incarcerated.
- 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.
- Ensure access for non-citizen business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
For more information about these changes and how to apply for a loan, visit the SBA COVID-19 small business guidance and loan resources page at: www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
To find a PPP lender in your community, visit www.sba.gov/PaycheckProtection/find.
For information on other available financial resources for small businesses, visit the Loans Page Loans Page, email firstname.lastname@example.org, or call 855-364-2516 to speak with a representative.