Last week, the Biden administration announced several changes to the implementation of the Paycheck Protection Program, including that small businesses with fewer than 20 employees have an exclusive two-week window to apply for PPP loans beginning Feb. 24 through March 9. Only small businesses that fall under the 20 employee threshold will be able to apply for loans during this period. The PPP is set to expire on March 31 without an extension from Congress.
Other changes include:
- Eliminate a restriction that prevents small business owners with prior non-fraud felony convictions from obtaining PPP loans.
- Eliminate a restriction that prevents small business owners who are delinquent on their federal student loans from obtaining PPP loans.
- Set aside $1 billion in PPP funding for sole proprietors, independent contractors, and self-employed individuals.
- Allow non-citizen small business owners who are legal U.S. residents to use Individual Taxpayer Identification Numbers (ITINs) to apply for PPP loans.
