PPP small borrower window opens, other reforms effective next week
One of the Biden administration's Paycheck Protection Program reforms announced earlier this week started yesterday, with the rest set to be implemented next week.
Now: A 14-day period during which only businesses with fewer than 20 employees can apply for PPP relief started yesterday. Applications already in the pipeline or requiring error resolution will continue to be processed during this period.
Next Week: Several other reforms are not set to take effect until next week. SBA said it will communicate details on these program changes this week.
- A revised loan calculation formula for sole proprietors, independent contractors, and self-employed individuals will reportedly use gross income instead of net income, as advocated by ICBA. Further, $1 billion will be set aside for PPP loans to businesses in this category that do not have employees and that are located in low- or moderate-income areas.
- Qualifying restrictions for small-business owners delinquent on their federal student loans or with prior non-fraud felony convictions will be eliminated.
- Non-citizen small-business owners who are lawful U.S. residents may use Individual Taxpayer Identification Numbers to apply for relief.
More: Additional PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.