Alert: PPP Loan Applications Only Open to Businesses with Fewer than 20 Employees from February 22 to March 9, 2021
February 23, 2021
Disclaimer: This information was correct at the time of publication; however, new guidance from government agencies may be issued at any time, causing some or all of this information to change. Please visit our COVID-19 Business Strategy Hub for the latest news and ensure you are subscribed here to receive email alerts as they are released. We are working diligently to provide the most current information as it becomes available under our COVID-19 Actionable Insights For Businesses Series.
Yesterday, President Biden announced several changes to the Paycheck Protection Program (PPP), making the program more accessible to the smallest businesses in the US. During a two-week window starting on Monday, February 22, 2021, from 9 a.m. ET until March 9, 2021, 5 p.m. ET, only businesses with fewer than 20 employees will be able to apply for PPP loans.
Additionally, to further improve access to PPP loans, the White House announced it will:
Remove restrictions that prevent small business owners with prior nonfraud-related convictions from applying for PPP relief.
Eliminate rules preventing small business owners with delinquency on federal student loan payments from obtaining PPP loans.
Allow small business owners who are noncitizens, lawful US residents to use individual taxpayer identification numbers (ITINs) to apply for relief.
The administration also intends to make additional changes to the PPP loan calculation formula in the near future to assist independent contractors, sole proprietors and self-employed individuals receive more financial support. Although no further details have been provided on these measures, it was noted that $1 billion will be set aside for businesses in this category that don’t have any employees and that are in low to moderate-income locations.
As of February 18, 2021, the Small Business Administration (SBA) had approved 1.8 million loans for a total of $133.5 billion. However, nearly 200,000 applications corresponding to over $20 billion in loans are still in process due to delays. The PPP application window for the $284 billion program is scheduled to close on March 31, 2021.
If you have additional questions about the latest round of the PPP, our PPP loan consultants are here to help. We can assist with applications for first- or second-draw PPP loans and PPP loan forgiveness calculations. Contact us for more information.
