New changes to the Paycheck Protection Program (PPP) were announced by President Biden on February 22. These tweaks to the PPP rules are meant to help small businesses and give them an exclusive window of time to apply for PPP funding starting February 24.
Details of the Latest PPP Changes
Another $284 billion was injected into the PPP program as part of the $900 Billion COVID-19 relief package signed December 27, 2020. Since applications opened in January, it’s estimated that the SBA has approved around $134 billion in forgivable small business loans. To improve equitable distribution of loans and help give small businesses an advantage, President Biden introduced the following changes:
- An exclusive window for businesses with less than 20 employees to apply for PPP loans beginning February 24. Businesses with 20 or more employees will be locked out of applying until March 9.
- Self-employed, sole proprietors and independent contractors can now use gross income, much like the recently changed calculation for farmers.
- Business owners with non-fraud felonies and those who were/are delinquent on student loans are now eligible to apply for PPP funding.
- At least $1 billion will be allocated for minority-owned businesses.
The Biden administration has not indicated whether they will try to extend the program after the current round expires March 31.
Our advisors are closely following COVID-19 relief efforts and will continue to publish insights to keep you informed on our COVID-19 Resource Center. Tune in to our video series PPP with Paul and Dan to learn more about the Paycheck Protection Program. To discuss your situation and recovery options, contact an Anders advisor below.
