Biden Administration announces PPP changes for small businesses
The Biden administration has announced several changes to the implementation of the Paycheck Protection Program (PPP), the National Lumber and Building Material Dealers Association (NLBMDA) has reported.
Changes include giving small businesses with fewer than 20 employees an exclusive two-week window to apply for PPP loans beginning Feb. 24 through March 9.
Only small businesses that fall under the 20 employee threshold will be able to apply for loans during this 14-day period.
The PPP is set to expire on March 31 without an extension from Congress, the NLBMDA said.
A full summary of the latest PPP changes is detailed below:
- Institute a 14-day period, starting February 24, during which only businesses with fewer than 20 employees can apply for relief through the PPP.
- Eliminate a restriction that prevents small business owners with prior non-fraud felony convictions from obtaining PPP loans.
- Eliminate a restriction that prevents small business owners who are delinquent on their federal student loans from obtaining PPP loans.
- Set aside $1 billion in PPP funding for sole proprietors, independent contractors, and self-employed individuals.
- Allow non-citizen small business owners who are legal U.S. residents to use Individual Taxpayer Identification Numbers (ITINs) to apply for PPP loans.
A fact sheet about the Biden Administration’s PPP changes can be accessed here.