SBA Prioritizes Smallest of Small Businesses in the PPP
The White House and Small Business Administration have announced some changes to the Paycheck Protection Program in an effort to ensure that small businesses are receiving support for a “robust and equitable recovery.”
Starting Wednesday, February 24, new PPP loan applications will be accepted for the following 14 days solely for businesses with fewer than 20 employees.
The additional four changes will be implemented by the first week of March:
The loan calculation formula will be revised and $1 billion will be set aside for businesses of that size without employees located in low- and moderate-income (LMI) areas.
Elimination of the prohibition against small business owners receiving a loan who have had a non-fraud-related felony arrest or conviction in the last year, unless the applicant or owner is incarcerated at the time of the application.
Elimination of the prohibition against a business receiving PPP funds which has at least 20-percent ownership by an individual who is currently delinquent or has defaulted within the last seven years on a federal debt, including a student loan.
Access for non-citizen small business owners who are lawful U.S. residents to apply for relief by using Individual Taxpayer Identification Numbers (ITINs).
A detailed fact sheet from the Administration can be found here.