On Monday, the Biden Administration announced clarifications and updates to the Paycheck Protection Program (PPP) aimed at increasing access to funding for small businesses. Below are five of the key updates:
- Starting Wednesday, February 24, businesses with fewer than 20 employees will have exclusive access to the PPP application portal for a two-week period ending March 9.
- Self-employed persons seeking PPP loans may now calculate the size of their loan based on gross income (instead of net income), increasing their potential loan value. $1 billion has been set aside for businesses in this category that operate in low- and moderate-income areas.
- Business owners with prior non-fraud felony convictions are no longer barred from applying for the PPP under the new guidelines.
- Previous rules disallowed loan forgiveness for owners who were behind on their federal student loan payments. The new guidance now extends the opportunity for PPP loan forgiveness to applicants with student loan debt delinquency.
- Lawful U.S. residents without a Social Security Number or Employer Identification Number can now apply for PPP funding using their Taxpayer Identification Numbers, creating clarity for business owners with visas or Green Cards.
Contact your local lender for more information, or reach out to us at firstname.lastname@example.org for assistance.