Some exciting news. Just a week after 100 organizations, including Main Street Alliance, called for changes and highlighted continued gaps with the COVID relief programs – the Biden Administration has announced updates to PPP that could expand access and eligibility – particularly for sole proprietors and micro-businesses.
- Instituting a 14-day period, starting Wednesday (Feb 24), during which only businesses with fewer than 20 employees can apply for relief through the Program
- Help sole proprietors, independent contractors, and self-employed individuals receive more financial support. Many are structurally excluded from the PPP or were approved for as little as $1 because of how PPP loans are calculated (based on Schedule C profits). To address this problem, the Biden-Harris administration will revise the loan calculation formula for these applicants so that it offers more relief, and establish a $1 billion set aside for businesses in this category without employees located in low- and moderate-income (LMI) areas. This updated rule is expected soon.
- Consistent with a bipartisan bill, eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program.
- Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program.
- 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.