New changes to the Paycheck Protection Program (PPP) were recently announced by President Biden on February 22. These changes to the PPP rules are meant to help small businesses and give them an exclusive window of time to apply for PPP funding starting February 24.
To improve equitable distribution of loans and help give small businesses an advantage, the following changes were announced:
- An exclusive window for businesses with less than 20 employees to apply for PPP loans beginning February 24. Businesses with 20 or more employees will be locked out of applying until March 9.
- Self-employed, sole proprietors and independent contractors can now use gross income, much like the recently changed calculation for farmers.
- Business owners with non-fraud felonies and those who were/are delinquent on student loans are now eligible to apply for PPP funding.
- At least $1 billion will be allocated for minority-owned businesses.
Visit sba.gov to learn more.
Source: Anders CPAs + Advisors