Final week (Wednesday, February 25, 2021), the White Home established a 14-day, unique PPP mortgage utility interval for companies and nonprofits with fewer than 20 staff.
“It will give lenders and neighborhood companions extra time to work with the smallest companies to submit their purposes, whereas additionally making certain that bigger PPP-eligible companies will nonetheless have loads of time to use for and obtain assist earlier than this system expires on March thirty first,” mentioned the President.
The SBA additionally introduced 4 extra modifications to open the PPP to extra underserved small companies.
In keeping with the White Home, the improved PPP will…
• Enable sole proprietors, unbiased contractors, and self-employed people to obtain extra monetary assist by revising the PPP’s funding method for these classes of candidates
• Remove an exclusionary restriction on PPP entry for small enterprise
homeowners with prior non-fraud felony convictions, in keeping with a
bipartisan congressional proposal
• Remove PPP entry restrictions on small enterprise homeowners who’ve
struggled to make scholar mortgage funds by eliminating scholar mortgage debt
delinquency being a disqualifier to taking part within the PPP
• Guarantee entry for non-citizen small enterprise homeowners who’re lawful U.S. residents by clarifying that they might use Particular person Taxpayer Identification
Quantity (ITIN) to use for the PPP.
In keeping with the President, 400,000 small companies have closed through the pandemic, and “tens of millions extra are hanging by a thread.”
Biden famous that 98% of small companies match into this class. By briefly limiting the approval course of to them, the aim is to get more cash to ventures which have a more durable time accessing capital than their bigger counterparts do.
Hyperlinks to info ready by the SBA