Smallest of Businesses to Get a Leg-Up in PPP Loan Access
There is more good news for small businesses in regard to the SBA’s Paycheck Protection Program! Beginning February 24th, 2021, there will be a two-week-long application period specifically for small businesses and nonprofits with fewer than 20 employees. This is in an attempt to give the smallest of our country’s businesses a leg up and make sure they are being served as best they can.
There are also four additional changes to the PPP, enacted to help these small businesses even further. The Small Business Administration announced that it will:
- Allow sole proprietors, independent contracts, and self-employed workers to receive even more financial support through a revised PPP funding formula aimed at helping these individuals specifically.
- Open up previously restricted PPP access for small business owners with prior non-fraud felony convictions.
- Open up previously restricted PPP access for small business owners with student loan debt delinquency.
- Clarify that non-citizen small business owners may use Individual Taxpayer Identification Number to apply for PPP loans.
Hopefully, this two-week window along with the new rules will allow for the distribution of more funds to our smallest businesses, as the SBA had previously found that a disproportionate amount of PPP funds had been going mainly to larger businesses. As always, make sure you visit the SBA loan resources website for the most accurate information and to keep yourself abreast of any changes to the loan program. Contact Weiss LLP for more information.