IMPORTANT UPDATES TO THE
PAYCHECK PROTECTION PROGRAM
On Monday February 22nd, 2021, the Biden-Harris Administration and the Small Business Administration (SBA) announced steps the agency is taking with the
Paycheck Protection Program (PPP) to further promote equitable relief for America’s mom-and-pop businesses.
Please review the following changes to the Paycheck Protection Program:
Starting Today, February 24th, 2021
1. Starting today, February 24th, 2021, the SBA will establish a 14-day exclusive PPP loan application period for business and nonprofits with fewer than 20 employees.
Starting Next Week
2. The SBA will allow sole proprietors, independent contractors and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants.
3. The agency will eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
4. Also, the SBA will eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP.
5. Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification number (ITIN) to apply for the PPP.
PLEASE CALL IF YOU NEED ASSISTANCE
The EDC SBDC call team and financial advisors are available to answer questions and help you navigate today’s complex financial environment. The Economic Development Collaborative hosts the Small Business Development Center and is funded in part through a cooperative agreement with the U.S. Small Business Administration. Signing up as a client takes just a few minutes and provides you lifetime access to all of our no-cost services.
Get started today with our no-cost consulting by calling
805.409.9159 (ENGLISH) or 805.309.5874 (SPANISH).
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