News

From February 24 to March 10, 2021, the United States Small Business Administration will only offer Paycheck Protection Program loans to businesses with fewer than 20 employees and sole proprietors.

About

On February 24, the United States Small Business Administration (SBA) established a 14-day, exclusive Paycheck Protection Program (PPP) loan application period for businesses and nonprofits with fewer than 20 employees. These changes were implemented to ensure equity and give lenders and community partners additional time to work with small businesses to submit their applications. Larger PPP-eligible businesses will still be able to submit their applications and receive support before the program expires on March 31, 2021.

Additional Changes

In addition to the exclusive loan application period, the following changes were made:

• • The SBA will 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.
• • The SBA will eliminate the exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions.
• • The SBA will eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier for participating in the PPP.
• • The SBA will ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use their Individual Taxpayer Identification Number (ITIN) to apply.

Paycheck Protection Program

The Paycheck Protection Program provides businesses with funds to pay up to eight weeks of payroll costs (including benefits). Funds may also be used to pay mortgage interest, rent, utilities, worker protection costs related to COVID-19, and other qualifying expenses. For more information, read this news post.

More Information

For more information about the 14-day, exclusive Paycheck Protection Program (PPP) loan application period, visit the United States Small Business Administration website.

This information was provided by the United States Small Business Administration.