What Small Businesses Need to Know About Revamped Paycheck Protection Program

Starting Wednesday, February 24, new applications for the Paycheck Protection Program (PPP) will be accepted for the following 14 days solely for small businesses. Businesses with less than 20 employees will have exclusive access from February 24 through March 9 to the relief program.

ppp loanThe window provides struggling small businesses with easier access to Federal relief for the COVID-19 pandemic. In addition to the exclusive application period, the White House is implementing several changes to the eligibility criteria to help small business owners receive PPP loans.

Changes to Paycheck Protection Program

The loan calculation formula will be revised to make more money available to sole proprietors, independent contractors, and the self-employed. $1 billion will be set aside for businesses in this category without employees located in low and moderate-income (LMI) areas.

The prohibition against small business owners applying for a PPP loan who have had an arrest or conviction for a felony related to financial assistance fraud within the previous five years; or any other felony within the previous year is eliminated, unless the applicant or owner is incarcerated at the time of the application.

Also eliminated is a prohibition against a business receiving PPP funds which has at least 20% ownership by an individual who is currently delinquent or has defaulted within the last seven years on a federal debt, including a student loan.

New provisions would allow non-citizen small business owners who are lawful U.S. residents to use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.

Questions

If you have questions about applying for a PPP loan for your business, contact us today.

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