What You Need to Know About New Updates to the Paycheck Protection Program
- The Biden-Harris Administration announced several reforms to the Paycheck Protections Program.
- The new 14-day window for applications opened on February 24 and ends March 10.
- Intended to help businesses with under 20 employees & sole proprietors receive more financial support.
- Eliminates an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions and outstanding student loan debt from obtaining relief through the PPP.
- Visit the SBA website for more information on how to find a lender and how to identify a loan.
On Monday, February 22, the Biden-Harris Administration recently extended PPP funding for small businesses with various addendums for eligible lending. Based on the February 22, 2021 statement and fact sheet, the Administration acknowledges the need for small business success, especially during the ongoing pandemic, due to the fact that “Small businesses account for 44 percent of U.S. GDP, create two-thirds of net new jobs, and employ nearly half of America’s workers.” Some notable changes to the recent period of the Program include:
- Helping small businesses with fewer than 20 employees and sole proprietors.
- Allowing for small business owners with prior non-fraud felony convictions and outstanding student loan debt can apply for funding.
- Ensuring that people with ITINs can apply for relief.
These additions help target small business owners that are typically restricted from applying for federal relief to “ensure equitable distribution of relief that values each and every taxpayer dollar.” Alongside these changes, the Administration also wishes to address an assortment of issues that plague small business. These include waste, fraud, abuse, lack of transparency and accountability, minimal digital resources, and an ineffective lender engagement model.
The current round of PPP funding started on Wednesday, February 24th and will extend to Wednesday, March 10th. The following businesses are eligible: businesses with fewer than 20 employees and sole proprietors only. As cited earlier, small business owners with prior non-fraud felony convictions and outstanding student loan debt can obtain relief, as well as people with ITINs. Visit the SBA website for more information on how to find a lender and how to identify a loan. There is additional information on coronavirus relief that can be found here.