Biden announces changes to small business relief programs

On Monday, President Joe Biden announced several changes to the Small Business Administration’s Paycheck Protection Program (PPP).

The administration will institute a 14-day period, starting Feb. 24, during which only businesses with fewer than 20 employees can apply for relief through the program. 

According to a White House statement, the 14-day exclusive application period is designed to help the 98% of small businesses that have fewer than 20 employees. Noting that these businesses often struggle more than larger businesses to collect the necessary paperwork and secure a PPP loan through a lender, the statement said that the targeted application window will free up lenders to focus on serving these smallest businesses.

The 14-day exclusive application period for the smallest businesses is one of five moves the administration said it is making.

Additionally, the administration will revise the loan calculation formula to provide more relief for sole proprietors, independent contractors, and self-employed individuals In addition, $1 billion will be set aside for businesses in this category that have no employees and are located in low- and moderate-income areas.

The administration will also eliminate a restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program. 

The administration will eliminate another restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program. 

The administration is also making plans to ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief. That statement says more guidance from the SBA will be necessary to show ITIN holders like Green Card holders or those here on a visa that they are eligible.

For more information, or to apply for a PPP loan, click here.