In order to assist small businesses struggling under the COVID-19 pandemic, changes are being made to the Paycheck Protection Program (PPP) to allow only small businesses to apply during a two-week period starting Wednesday, February 24, 2021. The changes were announced by the White House in a media call and with a Press Fact Sheet released by the White House.
The changes include:
- Only businesses with fewer than 20 employees can apply for loans for a two-week period, beginning February 24.
- The way loans are calculated will be revised so businesses without employees get more relief. The previous calculation — based on payroll — made the program ineffective for sole proprietors and independent contractors, including many businesses of color. The Biden administration also will set aside $1 billion in PPP loan funds for businesses without employees in low- and moderate-income areas.
- The elimination of an exclusion that prevents business owners with non-fraud felony convictions from accessing the program.
- The elimination of an exclusion that prevents business owners who are delinquent on federal students loans from accessing the program.
- Non-citizen small-business owners who are lawful U.S. residents will be able to apply for loans using individual taxpayer identification numbers.
BBB recommends watching the U.S. Small Business Administration website for updated information as changes are announced from the White House.
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