Paycheck Protection Program (PPP)
On Monday, February 22, 2021, the White House released a statement outlining changes to the PPP program to help small businesses:
- A two-week window where PPP applications will be restricted to businesses with fewer than 20 employees. This window starts Wednesday, February 24.
- A revised loan calculation method to increase the size of loans that sole proprietors, independent contractors, and the self-employed are eligible for.
- Establish a $1 billion set-aside of PPP funds for low- and moderate-income areas that have been traditionally underserved.
- Support for a bipartisan bill loosening the restrictions on felons applying for PPP loans.
- Allow business owners who are delinquent on federal student loans to apply for loans.
- Making green-card holders and other legal residents of the US eligible for PPP loans.
In addition to these changes, the Biden administration will continue to support the SBA’s fraud prevention efforts, improve the usability of the SBA website, and make the loan process easier and more accessible for small businesses.