President Biden announced restrictions to the SBA’s PPP 2.0 loan applications to benefit small businesses and non-profit organizations with fewer than 20 employees and sole proprietorships for a 2-week period from Wednesday, February 24, 2021 through March 9, 2021. On March 10, 2021, employers with over 20 employees will be able to again apply for PPP 2.0 funding until the expiration of this installment of funding on March 31, 2021.
President Biden also initiated further changes to the PPP program. These additional changes are:
- Revised Funding Formula. Allowing 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.
- Felony Convictions Won’t be a Barrier. Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
- Student Loan Debt Delinquency Is not Disqualifier. Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP.
- ITIN/Non-Citizen Applicants. 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 SBA will be working with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. SBA will also strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse.
