Paycheck Protection Program expands eligibility to smallest businesses and nonprofits
Information provided courtesy of Small Business Administration
The U.S. Small Business Administration is taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses.
Beginning on Wednesday, February 24th and the 14-day period following, the PPP loan application portal will be open to businesses and nonprofits with fewer than 20 employees. Additional measures are being taken to provide opportunities to smaller business, especially in low and moderate-income, rural, urban, and other underserved areas. Guidelines being reviewed include:
o 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.
o Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
o 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
o 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 program changes and will communicate detail to the partner agencies throughout the next week. These actions will help to lay the foundation for a robust and equitable recovery for small businesses across the country. Small businesses employ nearly half of the American workforce; they create 2 out of 3 net new private-sector jobs; they reinvest 68% of revenues to build and sustain communities.
If you have questions regarding your business qualifications, you may contact the Blue Ridge Crossroads Small Business Development Center at (276) 601-7727 to schedule an appointment. Additional information can be found by visiting www.sba.gov/ppp.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
About Virginia Small Business Development Centers
The Virginia SBDC network is a partner agency with SBA and is the largest and most effective provider of customized counseling and education for small businesses in the Commonwealth. The SBDC counselors are certified business analyst that provide confidential and free counseling to discuss your specific issues.