The latest round of Paycheck Protection Program funding opened in late January and already the Biden Administration has succeeded in making major improvements to the program’s implementation:
• For businesses with fewer than ten employees, the share of funding is up nearly 60%
• For businesses in rural communities, the share of funding is up nearly 30%
• The share of funding distributed through Community Development Financial
“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,” said SBA Senior Advisor Michael Roth. “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.”
These simple progressive steps by the Biden-Harris Administration further demonstrate the commitment to racial and gender equity, reaching low and moderate-income, rural, urban, and other underserved areas. The SBA will:
• Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
• Allow 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
• Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
•Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and
•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 14-day exclusivity period started on February 24th, while the other four changes were implemented the first week of March. These actions are designed to help lay the foundation for a robust and equitable recovery for small businesses across the country.
Information for this article was provided by the SBA. Borrowers can apply for the Paycheck Protection Program by downloading the First Draw PPP loan application or Second Draw PPP loan application from SBA.gov/ppp and working with a participating PPP lender through the SBA Lender Match tool.