President Joe Biden announced Monday adjustments to the Paycheck Protection Program designed to aid smaller businesses in applying for loans. Starting Wednesday, at 9 a.m. EST for a 14-day period, only businesses with fewer than 20 employees (comprising 98% of small businesses) will be able to apply for PPP loans, giving lenders a chance to focus on the smallest Main Street businesses.
Other changes Biden announced he would make to the Paycheck Protection Program include:
- Tweaking the “loan calculation formula” to help sole proprietors, independent contractors, and self-employed business owners receive more support.
- Setting aside $1 billion for businesses without employees in low and moderate-income areas.
- Allowing non-citizen small business owners who are U.S. residents to use their ITINs (Individual Tax Identification Numbers) to apply for relief.
- Removing the previous PPP loan eligibility requirement that prevented small business owners from receiving funds if they had prior, non-fraud felony convictions.
- Eliminating a restriction that excluded business owners from receiving PPP loans if they were delinquent on or have defaulted on any of their federal student loan debt within the last seven years…