President Joe Biden announced changes to the Paycheck Protection Program (PPP) on February 22, which includes limiting applications from businesses with fewer than 20 employees beginning Wednesday, February 24. The limitation will be in effect for two weeks until March 9.
Under the Covid relief package that was passed in December, $284 billion for the PPP program. The Small Business Administration has approved about $134 billion in PPP loans since in the first month.
Additional changes include:
- Making it easier for sole proprietors, independent contractors and self-employed individuals to receive more financial support by revising the program’s funding formula.
- Eliminating restrictions that prevent small business owners with prior non-fraud felony convictions from getting a loan
- Preventing small business owners who are delinquent on their federal student loans from obtaining relief.
- Making it easier for those with green cards or on a visa to get aid. Small business owners who are lawful U.S. residents could use an Individual Taxpayer Identification Number (ITNs) to apply.
The PPP loan program is still set to expire March 31.