New changes announced for Paycheck Protection Program

Local News

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WACO, Texas – The Small Business Administration has established a 14-day, exclusive Paycheck Protection Program (PPP) loan application period for businesses and nonprofits with fewer than 20 employees.

This will give lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses will have plenty of time to apply for and receive support before the program expires on March 31st.

SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before. While these changes are being implemented, SBA will work with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. SBA will also strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse.

SBA will:

• 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 student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP.

• 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.

The SBA is working on the program changes, and will communicate details throughout this week.

Borrowers can apply for the PPP by downloading the First Draw PPP loan application or Second Draw PPP loan application and working with a participating PPP lender through the SBA Lender Match tool.

For additional details, you can visit SBA here.

Source: Greater Waco Chamber of Commerce

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