Yesterday our office was notified that the White House announced targeted changes to the Paycheck Protection Program (PPP) that will provide minority-owned businesses, “mom-and-pop” businesses, and very small nonprofits with access to the support they need.
Businesses and nonprofits with fewer than 20 employees will have a two-week exclusive window to apply for PPP loans starting Wednesday, February 24. This period of exclusivity will give lenders and community partners more time to work with the smallest businesses to submit their applications and ensure these organizations are prioritized.
Other changes include:
- Self-employed and sole proprietors can now use gross income (versus net income) to calculate the PPP loan amount, increasing potential loan size.
- Business owners behind on their federal student loan payments are now eligible for PPP loan forgiveness.
- Clarification that non-citizen small business owners who are lawful U.S. residents can use an Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
- Small business owners with prior non-fraud felony convictions are no longer excluded from applying for PPP loans.
Click here to read the announcement and learn more about the steps that are being taken to promote equitable access to this important program. The SBA website also includes tools to help you get matched with a lender or find lenders in your area.
We encourage you to act quickly. Unless the federal government extends the deadline, the PPP will expire on March 31, 2021.
If you have any questions, please feel free to reach out to our Economic Development Director, Joe McGrath at: firstname.lastname@example.org or (203)-574-6712.