CTSBDC – Paycheck Protection Program Updates

Upon directive from the new administration, the SBA is working on updating guidelines related to enhancements, clarifications, and ensuring access to PPP for the smallest businesses. Based on these, the SBA will:

• Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
• Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
• Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
• Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and
• Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

With official guidelines set to be released the week of March 1st, we will cover these updates and their implications for small business owners as they prepare to apply for their first or second-round of PPP.

PLEASE NOTE: The loan amount calculation for sole proprietors, independent contractors, and self-employed individuals is being revised by the SBA. We encourage you to wait to apply, if possible, in order to maximize the amount you may be eligible for as the difference may be significant.

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