Paycheck Protection Program Changes

Share on facebook
Share on google
Share on twitter
Share on linkedin

In April 2020, Congress passed the CARES Act, which included the Paycheck Protection Program (PPP), providing loans to businesses, sole proprietorship and exempt organizations that were experiencing financial hardships due to COVID-19. Unfortunately, the Program requirements made it difficult for minority businesses to participate and therefore resulted in many being denied PPP funds and going out of business. However, the new administration have made changes in the law which now provide those businesses access to resources beginning on February 24, 2021. These changes are ONLY in effect for a few weeks and therefore it is imperative that your respond or apply immediately! Here are some of the changes.

Incarcerated Business Owners

In the original legislation, small business owners with prior felony convictions were barred from obtaining Covid-19 relief. Now all small business owners with prior felony convictions are fully eligible to apply and should qualify for funding, as long as their prior felony conviction was not fraud related.

Immigrant Business Owners

In the original PPP legislation small business owners who were Green Card Holders and not United States Citizens, were ineligible to receive Covid-19 relief funding. Now,  small business owners who are Green Card Holders can apply and quality for PPP funding even without a social security number but using their Individual Taxpayer Identification Number (ITIN).

Student Loans

In the original legislation small business owners who were delinquent on their student loans were denied access to Covid-19 relief funding. Changes in the law now allow  small business owners are delinquent on their student loans to apply and quality for PPP funding.

Business Owner Without Payroll

The original PPP legislation made it  difficult for business owners who did not have employees to apply and qualify for Covid-19 relief funding. Sole entrepreneurs , self employed, independent contractors or any business without employees can now expect more PPP support this round.  In other words the loan amount should not only be based upon payroll but on over all lost of revenue to the business.

While these changes took effect February 24, 2021 they are particularly focused on small businesses with 20 or less employees for the next two weeks. Therefore,  it is  critical you apply for PPP loans as soon as possible. If you need assistance preparing your application for a PPP loan, schedule a consultation. We would appreciate the opportunity to service your business.