Equitable Relief for Small Businesses

February 25, 2021 Guest User

The Paycheck Protection Program, Biden-Harris Administration and U.S. Small Business Administration are taking action to further equitable relief for small businesses (even the smallest!).

In the latest round of the Paycheck Protection Program’s funding, the Biden-Harris Administration has made significant improvements:

Businesses with fewer than 10 employees, the share of funding is up nearly 60%
Businesses in rural communities, the share of funding is up nearly 30%
The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%

The Small Business Administration will:

Establish a 14-day PPP loan application period for businesses and nonprofits with fewer than 20 employees
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
Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
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
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

The 14-day period will begin Wednesday, February 24, 2021 at 9 A.M. and the other changes will be implemented by the first week of March.

Businesses can apply for the Paycheck Protection Program by downloading the First Draw PPP loan application or Second Draw PPP loan application and working with a participating PPP lender through the SBA Lender Match tool. Updated PPP information, including forms, guidance, and resources is available at www.sba.gov/ppp and www.treasury.gov/cares.