PPP Regulations Change: SBA Prioritizes Micro Business For Two Weeks

– SBA

The U.S. Small Business Administration announced changes to the Paycheck Protection Program under the Biden-Harris administration on Feb. 22, notably that there will be a 14-day period during which only businesses and nonprofits with less than 20 employees can apply.

The window for micro businesses to exclusively apply for PPP loans begins at 9 a.m. on Feb. 24. The SBA will also allow sole proprietors, independent contractors and self-employed individuals to receive more support, will eliminate exclusionary restrictions for applicants with non-fraud felony convictions, will eliminate federal debt loan delinquency, and allowing applications with Individual Taxpayer Identification Number for non-citizens.

The Biden-Harris administration said it has made these changes as a part of its commitment to racial and gender equity.

Additional changes to PPP include an increase in funding share for businesses with less than ten employees, in rural communities and the amount of funding distributed through Community Development Financial Institutions and Minority Depository Institutions.

“The SBA is a frontline agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural, and other underserved communities in meaningful ways. While reported data illustrates we have made real strides in ensuring these funds are reaching underserved communities, we believe we can still do better,” SBA Senior Advisor Michael Roth said in a statement. “The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families build wealth.”

There is still no information available as to when regulations and applications for Shuttered Venue Operators Grants (which were developed after the passage of the Save Our Stages Act) will be made available.

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