Take Two

Beginning last Wednesday, February 24, 2021, the Small Business Administration ("SBA") began a 14-day PPP loan application window for small businesses and non-profits (meaning those with under 20 employees). This will help lenders dedicate time to work with small businesses for two weeks, while larger businesses can begin working on their applications and prepare to submit them beginning March 11.

The SBA has implemented additional changes that are intended to open PPP loans to more businesses:

  • The funding formula for sole proprietors, independent contractors, and self-employed individuals is being revised to provide more financial support to those in these categories;
  • Based on a bipartisan congressional proposal, small business owners with prior felony convictions that did not involve fraud can now be considered;
  • Further, small business owners with student debt delinquencies are no longer eliminated from PPP loan consideration; and
  • Lawful U.S. residents who are non-citizen small business owners may use their Individual Taxpayer Identification Number (ITIN) to apply.

Congress has allocated $15 billion for small and low-moderate income businesses, but the restrictions and disproportionate amount going to larger businesses has resulted in only $2.4 billion going to lesser-advantaged businesses. Expanding access to the loans by eliminating certain restrictions should help honor the goal of reaching out and giving a “hand-up” to small businesses - the backbone of America.

See the SBA website and contact your lender for more details. If you have questions or need help, always feel free to reach out to us at Wright Beamer at info@wrightbeamer.com or (248) 477-6300.