President Joe Biden announced Monday adjustments to the Paycheck Protection Program designed to aid smaller businesses in applying for loans. Starting Wednesday, at 9 a.m. EST for a 14-day period, only businesses with fewer than 20 employees (comprising 98% of small businesses) will be able to apply for PPP loans, giving lenders a chance to focus on the smallest Main Street businesses.
Other changes Biden announced he would make to the Paycheck Protection Program include:
- Tweaking the “loan calculation formula” to help sole proprietors, independent contractors, and self-employed business owners receive more support.
- Setting aside $1 billion for businesses without employees in low and moderate-income areas.
- Allowing non-citizen small business owners who are U.S. residents to use their ITINs (Individual Tax Identification Numbers) to apply for relief.
- Removing the previous PPP loan eligibility requirement that prevented small business owners from receiving funds if they had prior, non-fraud felony convictions.
- Eliminating a restriction that excluded business owners from receiving PPP loans if they were delinquent on or have defaulted on any of their federal student loan debt within the last seven years.
This deadline for this round of PPP funding for all businesses ends March 31.
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