Exclusive access and important updates to the PPP

The Biden administration recently announced they are implementing a two-week period that will provide greater access to Paycheck Protection Program (PPP) for businesses with less than 20 employees.


From Wednesday, February 23rd (that’s right, it’s already started!) through Wednesday, March 10th, PPP loans will only be available to businesses with fewer than 20 employees. This move is an effort to provide greater access to PPP loans for small businesses, which often face greater challenges when applying for government support.


According to the administration, the 14-day period will help roughly 98% of small businesses that have less than 20 employees. These businesses face unique challenges when applying for government support, and simple tasks like collecting paperwork can often be a challenge. Under normal circumstances, lenders often focus on larger businesses at the expense of smaller ones. This period, it’s hoped, will free up lenders’ time while allowing them to deliver PPP loans to the ones that most need it.


If you are a small business owner who has struggled to secure a PPP loan, or if you have considered the option but have been discouraged by complex red tape and a lack of access to busy lenders, now may be the time to get started. This could be your chance to secure a PPP loan; at the very least, it represents a wonderful opportunity to learn more about the program.


The 14-day period, however, is not the only change being implemented. There are other changes that impact who can secure these loans and how the calculations are made.


What else is changing?


Changes in PPP calculation

Although specific details have not yet been released, the administration also announced that they will implement changes to the PPP loan calculation. This move is intended to help sole proprietors and independent contractors gain access to the government’s financial support.


$1 Billion set aside for solo business in low- and -moderate income areas

If you are a small business owner that lives in an area with a low or moderate average income, you may be eligible for exclusive financial support. Again, details have not been announced for how this money will be distributed and who (specifically) will be eligible.


Easing restrictions on felons

Previously, business owners who had felony convictions faced steeper challenges for securing these loans, and many were completely ineligible for the financing. However, the government is easing this restriction and allowing access to small business owners who have been convicted of non-fraud-related felonies.


Access for delinquent student debt holders

The previous legislation also had a clause stating that any applicants with late payments on federal student loans would be ineligible for the PPP. Any business who had an owner with 20% ownership or greater was unable to secure PPP funding, but this exclusion has been eliminated and all student-loan-related restrictions appear to be eliminated.


Allow ITINs on application

In an apparent effort to speed the process even more, business owners are now able to use their individual taxpayer identification numbers to apply for relief. This measure is expected to increase access to non-citizen U.S. residents who use an ITIN to pay their taxes.


Updated SBA website

The administration also hopes to update areas of the SBA website to increase clarity and improve communication. These changes, it’s hoped, will help applicants find the right resources and better understand relief options.


Collecting feedback  

The SBA will attempt to increase opportunities for lenders to provide input on the PPP. Through various initiatives, the government hopes to improve back-and-forth feedback from everyone involved in the process.


Addressing PPP Processing Delays

While no specific solution has been offered yet, the administration wants to address PPP processing delays, which are largely caused by validation checks. Early in the PPP, frequent cases of fraud cased the government to implement complex validations. These validations, however, have caused  massive delays. The Small Business Administration has been encouraged to work with lenders to streamline the process without sacrificing the integrity of the loans.


With these changes, it seems the PPP could be vastly improved in the near future. As a small business owner, if you have been considering a PPP loan, the time to apply is now.


Find the right workers today


It’s a difficult time to be a business owner, but it’s also a time full of genuine opportunity. If you need top-quality workers to grow and improve your business, work with Snagajob today!

Tom Quinn |
Tom (he/him) is a growth marketing manager at Snagajob helping small businesses find hourly workers.