Biden Administration Changes to PPP Loans to Help Small Businesses
February 24, 2021
On Monday February 22, 2021, the President announced changes to PPP loans to help small businesses. Beginning Wednesday, February 24, 2021, at 9:00 a.m., the SBA will establish a 14-day PPP loan application period that is exclusively for businesses and nonprofits with fewer than 20 employees. This exclusive period is designed to give lenders and community partners time to work with the smallest businesses while leaving sufficient time for larger businesses to apply for a PPP loan before the application period for the program expires on March 31, 2021.
The SBA also announced four additional changes to PPP loans to open the program up to underserved small businesses. The changes are:
- Revised the PPP’s funding formula for sole proprietors, independent contractors, and self-employed individuals, which should increase the financial support they receive;
- Consistent with a bipartisan congressional proposal, eliminated an exclusionary restriction on PPP loans for small business owners with prior non-fraud felony convictions;
- Eliminated student loan debt delinquency as a disqualifier to obtaining a PPP loan; and
- Ensure access to the PPP by non-citizen small business owners, who are lawful U.S. residents, by clarifying they may use Individual Taxpayer Identification Number (ITIN) to apply for a PPP loan.
Government assistance available through the PPP is continually changing. Whether you are considering applying for a First Draw PPP loan, considering applying for a Second Draw PPP loan, need help understanding your options under the program, or need help determining what other help is available, the attorneys at Rothman Gordon P.C. are ready to assist. Please contact us online or call (412) 338-1169.