In an effort to prioritize reaching minority-owned and very small businesses, the Biden-Harris Administration has announced upcoming changes to the Paycheck Protection Program (PPP) beginning March 9, 2021.
In a statement released from the White House on February 22, these changes include:
- Institute a 14-day period, starting Wednesday, during which only businesses with fewer than 20 employees can apply for relief through the program. Businesses whose PPP applications are submitted and pending up to this window are not expected to face processing delays.
- Reforms to application and calculation of funds for sole proprietors, independent contractors and self-employed individuals so that these entrepreneurs can access more financial support.
- Eliminate restrictions that prevents small business owners with prior non-fraud felony convictions from obtaining relief through PPP.
- Eliminate restrictions that prevents small business owners who are delinquent on their federal student loans from obtaining relief through PPP.
- Ensure all lawful U.S. residents can apply by clarifying Individual Taxpayer Identification Numbers (ITINs) may be used to apply for relief.
The upcoming changes also include several reforms to SBA operations including addressing waste, fraud, and abuse, changing the application to better understand how the program is reaching various populations, and improving the information and resources available online about relief efforts.
Businesses have until March 31, 2021 to apply for PPP first and second-draw loans.
President Biden delivered remarks about these changes on Monday.
More information for cooperatives on PPP and other federal relief is available here.