As you may be aware, the White House announced changes to the Paycheck Protection Program (PPP) that focus on supporting smaller businesses in under-served communities. The changes include:
- An exclusive 14-day application window, starting February 24th and ending on March 9th, during which only businesses with fewer than 20 employees can apply for PPP relief.
- A $1 Billion set aside for sole-proprietors, independent contractors and self-employed individuals in low- and moderate-income (LMI) areas and the intent to revise the loan calculation formula for these businesses based on gross income to meaningfully increase aid available to Schedule C filers.
- Elimination of an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining PPP relief.
- Elimination of an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining PPP relief.
- Ensures access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
What next? If you haven’t looked into PPP for your businesses, or haven’t looked into it recently, make sure you’re up-to-date on these changes and reach out to your accountant or your local lending institution for more information.