Employer Update Small Business Administration Announces Paycheck Protection Program Changes Per Biden Administration

By Lee Allphin, Employer Advantage Founder and Chairman of the Board

Employer Advantage is sharing important information to guide our clients through applying and receiving forgiveness for their Paycheck Protection Program (PPP) loans. Please contact us if you would like further assistance during the Coronavirus pandemic or with any of your other Employee Administration and Compliance responsibilities: Info@EmployerAdvantage.com | 877.476.9520

On February 22, 2021 President Biden announced several administrative changes to the Paycheck Protection Program (PPP).

A fact sheet from the White House can be found here: FACT SHEET: Biden-Harris Administration Increases Lending to Small Businesses in Need, Announces Changes to PPP to Further Promote Equitable Access to Relief | The White House

To assist businesses in understanding these new changes, here is a summary:

  • Allows 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.
  • Establishes a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
  • Eliminates an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
  • Ensures access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
  • Eliminates 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.

We anticipate more guidance from the Biden administration soon. Here is a link to resources currently available:  Coronavirus (COVID-19): Small Business Guidance & Loan Resources (sba.gov)

 

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