A new policy directive from the Biden administration qualifies a whole new set of businesses for Paycheck Protection Program (PPP) Loans. In the past, if you operated your business as a sole proprietorship, or employed less than 20 workers, then the old PPP standards left you out. Not anymore.
For limited time only, the Small Business Administration (SBA) will allow sole proprietorships and businesses with fewer than 20 employees to apply for PPP loans. The SBA will only accept applications from these types of businesses from now until March 10th, 2021. So, if you qualify, you need to act now.
Here’s what you need to know about the changes to PPP.
How Did the Biden Administration Change PPP Loans?
Biden’s administration proposed five important changes:
A two-week application period for the smallest businesses
As explained above, the SBA will now allow sole proprietors and businesses with fewer than 20 employees to apply for PPP money. Applications from these businesses will be accepted from now until March 10th.
More help for sole proprietors, independent contractors, and self-employed individuals
Though the full details of the plan have not yet been disclosed, the Biden administration plans on amending the PPP loan calculation formula to better serve the needs of sole proprietors, independent contractors, and the self-employed. As part of the initiative, the administration plans to allocate $1 Billion to these types of businesses located in low and moderate-income (LMI) areas.
Improved access to applications for former felons
As part of the PPP Second Chance Act, business owners with any type of felony on their record within the previous year will now have increased access to PPP applications. This also includes any business owner with an arrest, or conviction in the previous year for a felony related to financial assistance fraud.
Help for business owners struggling to pay student loans
Business owners struggling with any type of federal debt, including student loans, now have increased access to PPP applications. This applies to applicants that are currently delinquent, or have defaulted within the last seven years.
Assistance for business owners without U.S. citizenship
Small business owners can now use their Individual Taxpayer Identification Numbers (ITINs) to apply for PPP Loans, so long as they are lawful U.S. residents.
Contact Boxelder Consulting
With the laws governing PPP Loans changing nearly every month, it can be confusing to keep track of the current rules. That’s why having a licensed professional on your side is so important!
At Boxelder, our team of tax attorneys, accountants, CPAs, and business consultants can submit your PPP application, and guide you through the process of PPP Loan Forgiveness. These loans are keeping businesses alive during COVID-19. We can help you get one. Call today at 303-317-6111 for your free consultation.