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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.
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.
Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.