WASHINGTON, D.C. (WWTI) — The Paycheck Protection Program will now aim to prioritize the “smallest” of small businesses based on a recent announcement.
The Biden-Harris Administration and the U.S. Small Business Administration announced on Monday that they plan to make reforms to the Paycheck Protection Program to prioritize “equitable access to relief.”
Specifically, five reforms are planned to be made to the program with one starting on February 24, and the rest to be implemented in the first week of March.
The first reform will include a 14-day exclusive Paycheck Protection Program loan application period for businesses and nonprofits with fewer than 20 employees. The 14-day period will begin on Wednesday, February 24 at 9 a.m.
Additional reforms include:
- A revision to the Paycheck Protection Program funding formula for sole ole proprietors, independent contractors, and self-employed individuals. The SBA will allocate $1 billion for those businesses without employees in low-to-moderate income communities
- Fairer access for returning citizens by eliminating the PPP eligibility restriction that did not allow those with a felony within the previous year to apply
- Allowing those who have struggled to make and are now delinquent on federal student loan payments to apply for the PPP
- Ensuring access for immigrant small business owners who lawfully reside and pay taxes in the U.S. by clarifying that Individual Taxpayer Identification Number (ITIN) holders can apply for the PPP
A full fact sheet on these reforms can be found on the White House website.