PPP Relief for Small Businesses
In a recent measure which took effect on February 24th that largely affects small businesses, the Biden Administration announced they are taking large steps to keep local businesses open by offering exclusive access to PPP funds via a special application during a limited offering which runs through March 10th. They plan to do this by offering businesses and nonprofits specifically with 20 employees or less exclusive access to PPP funds over this time. Guidance isn’t specific if it’s for first or second draw loans, however currently it appears to be all encompassing.
Per the SBA’s website, additional upcoming changes which are still being anticipated, involve a modified formula for PPP funding as well to be released soon.
Additional implementations still being worked currently to help underserved businesses and communities are to (from sba.gov):
- Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
- Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
- Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use their Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
In addition, the SBA also plans to drive efficiency of their website to better help applicants find resources and proper applications, continue to learn about areas of opportunity within current stimulus funding programs, as well as launch a new initiative with lenders specifically so that they can have a better platform to ask questions about PPP and have things clearer for them (the lenders) to understand, and better assist applicants.
Lear & Pannepacker can help you ensure you receive your maximum PPP loan as part of our business advisory services. For up-to-date information on these changes, please make sure to visit the COVID-19 SMB Loan Resource Page on sba.gov:
If you have any questions on this topic, contact the team at Lear & Pannepacker.