Press release from Mountain BizWorks:
A few key points:
- On Monday, the Biden Administration and SBA announced five upcoming changes to the Paycheck Protection Program to further strengthen its benefits and accessibility to very small businesses. A summary of these changes is below.
- The most substantive change will be a new formula for sole proprietors, independent contractors, and self-employed individuals allowing them to calculate their PPP loan amount based on Schedule C gross income, versus the current requirement to use net income. This is very meaningful, as many who use Schedule C could see their eligible PPP amount double or more.
- IMPORTANT: These changes have been announced but not yet implemented. SBA has committed to finalize program guidance and put the new changes into effect “by the first week of March.”
- We are tracking these changes closely and will share additional information as it’s available, including details pertinent to new potential applicants, as well as for existing applicants and recipients who may qualify for additional PPP relief under the new rules.
- We have temporarily paused accepting PPP applications while we await the new guidelines and to allow us to continue processing applications already received and not affected by these program changes. Once able, we are planning to re-open our PPP application site on a limited basis, with a focus on assisting those very small businesses with new or increased eligibility.
- If you are a sole proprietor, independent contractor, or self-employed, we encourage you to join us next Tuesday for our PPP informational webinar where we will be covering the latest updates regarding these changes.
SBA PPP Changes Announced This Week:
- Establish a 14-day, exclusive 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; and
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use their Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
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