The Biden administration has announced a series of PPP reforms that are designed to help many of the nation’s smallest businesses, including those that are minority-owned.
Those reforms include the following:
- For a two-week period beginning on Wednesday, PPP loans will be available only to businesses with fewer than 20 employees.
- Loan calculation formulas will be revised so that more relief goes to sole proprietors, independent contractors, and self-employed individuals.
- Business owners with non-fraud felony convictions will no longer be excluded from PPP relief.
- Business owners who are delinquent on their federal student loans will no longer be excluded from the program.
- Non-citizen business owners who are lawful U.S. residents can now apply for PPP relief by using their Individual Taxpayer Identification Numbers.
This fact sheet from the White House offers complete details about the changes.
PPP delays continue
Meanwhile, procedures implemented by the Small Business Administration to screen for potential fraud among PPP applicants continue to cause delays in the application process. This Journal of Accountancy article offers further details.