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Web Site: http://www.sbaonline.sba.gov
409 Third Street, SW, Washington, DC 20416
Tel: (860) 240-4654 Fax: (860) 240-4659

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Updated Information on the PPP

March 1, 2021

Amy K. Bassett, Acting Regional Administrator, New England Regional Office U.S. Small Business Administration

Recently, the Biden-Harris Administration and the SBA announced steps to further promote equitable access to the Paycheck Protection Program for America's mom and pop businesses. The reported data over the last month, shows that the SBA has made improvements in equitable access in the newest round of PPP funding, resulting in a significant increase in funding to underserved groups compared to the first month of the PPP in April 2020:
* For businesses with fewer than ten employees, the funding share is up nearly 60%
* For businesses in rural communities, the funding share is up nearly 30%
*The funding share distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%

While this data is encouraging, there is more we can do to provide a stronger hand-up to the smallest firms affected by COVID-19 that were being left behind.

On Wednesday, February 24, 2021, the SBA opened a 14-day exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees (this application period ends at 5 pm ET, March 9). Along with giving lenders and community partners this dedicated time to work with the smallest businesses to submit their applications, it also ensures larger PPP-eligible businesses still have time to apply for and receive support before the PPP ends on March 31.

The SBA is implementing four more PPP reforms the first week of March to promote equitable access for small business relief, including:
1. Revising the PPP funding formula for sole proprietors, independent contractors, and self-employed individuals to allow them to use the gross income line on Schedule C instead of net profit, which may result in larger loan amounts
2. Eliminating an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
3. Eliminating 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
4. Ensuring 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.

These actions will help to lay the foundation for a robust and equitable recovery for small businesses across the country.

Member News is provided as a service of the Midstate Chamber of Commerce and is also featured in the monthly "Chamber News" newsletter mailed to members.