On Monday, the Presidential administration announced that on Wednesday, February 24th, a new two-week Paycheck Protection Program (PPP) loan application window will open specifically for businesses with fewer than 20 employees.
This exclusive 14-day application period is designed to help the 98% of small businesses that have less than 20 employees, many of whom have struggled to complete the complex PPP loan application process. Additionally, this targeted strategy will allow lenders to focus solely on these smallest businesses.
The White House will also implement several other changes in regard to PPP, including:
- Continuing to work with lenders and other stakeholders to address PPP processing delays as quickly as possible.
- Changing the PPP loan calculation formula to help sole-proprietors, independent contractors, and self-employed individuals receive more financial support. Details of these changes have not yet been released.
- Eliminating a restriction preventing small business owners with prior non-fraud felony convictions from applying for a PPP loan.
- Eliminating a restriction preventing small business owners who are delinquent on federal student loans from applying for a PPP loan.
- Allowing non-citizen small business owners who are legal US residents to apply for a PPP loan.
- Updating key areas of the Small Business Association website to make it easier for applicants to find resources.
- Continuing to communicate with stakeholders to identify challenges and opportunities in current emergency relief programs.
- Launching a new initiative to increase communication with PPP lenders and streamline resolution of any issues.
The new targeted application window is scheduled to close March 10, 2021, and the general application window is currently scheduled to close March 31, 2021.
Are you eligible to apply in the targeted window? Do you have questions on the PPP loan application process? Leave a comment below, visit our COVID-19 Resource Center, or feel free to contact our PPP team directly at PPP@crrcpa.com, we are happy to help.