What are the Changes to the PPP and Does it Affect My Business?

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The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Borrowers may be eligible for PPP loan forgiveness.

The U.S. Small Business Administration (SBA) announced changes February 24, 2021 designed to reduce delays in the Paycheck Protection Program (PPP) approval process.

In order to reach the smallest businesses, the SBA will offer PPP loans to only businesses with fewer than 20 employees and sole proprietors from Wednesday, February 24 through Wednesday, March 10, 2021. President Biden has also announced additional program changes to make access to PPP loans more equitable. Check out our FAQ page to learn more.

What’s Changed?

The Biden-Harris Administration and the SBA are taking steps with this round of the Paycheck Protection Program to make relief for America’s mom-and-pop businesses more equitable.

With these changes the SBA will:

  • Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
  • 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
  • Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP
  • Now allow borrower’s Individual Taxpayer Identification Number (ITIN) to be used in applying for the PPP.

The 14-day exclusivity period will start on Wednesday, February 24, 2021 at 9 a.m., while the other four changes will be implemented by the first week of March. The SBA is working on the program changes and will communicate details throughout this week. Please check the SBA website for the most up to date information. Updated PPP information, including forms, guidance, and resources is also available at U.S. Department of the Treasury.

Apply for the Paycheck Protection Program today

If you haven’t already applied for this round of the PPP, learn more about applying through Revenued’s automated application platform today. For any questions regarding the PPP that are not addressed above, please visit out FAQ page.

Note: Due to funding no longer being available through the US Small Business Administration (SBA) for the Paycheck Protection Program (PPP), Revenued is no longer accepting applications.

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