New PPP Changes to Help Businesses with Less than 20 Employees
The Biden administration announced Monday that it would institute a two-week period starting Wednesday, Feb. 24 during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans. The goal of the administration is to target more federal pandemic assistance to the nation’s smallest businesses.
The administration said the 14-day exclusive application period is designed to help the 98% of small businesses that have fewer than 20 employees. The statement said that the targeted application window will free up lenders to focus on serving these smallest businesses.
The White House statement also announced several reforms to build on the success by further targeting the PPP to the smallest businesses and those that have been left behind in previous relief efforts. In addition to the 14-day period for businesses with fewer than 20 employees, to apply for PPP, the Biden-Harris administration will:
- Help sole proprietors, independent contractors, and self-employed individuals receive more financial support.
- Consistent with a bipartisan bill, eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program.
- Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program.
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
If you have questions about applying for a PPP loan or PPP forgiveness, please reach out to a Squire Advisor to discuss your specific situation and options.