Paycheck Protection Program Changes Announced

The Paycheck Protection Program (PPP), a loan program enacted last year designed to aid struggling small businesses during the COVID-19 pandemic, is receiving adjustments from the new presidential administration. There is a little over a month to go in the latest PPP application window and $150 billion reportedly remains in the fund.

A handful of the changes…

• Beginning Feb. 24, there will be a two-week period in which only businesses with fewer than 20 employees can apply for the PPP. The government said that 98% of small businesses have fewer than 20 employees; CNBC reported these businesses have received 45% of PPP funding.
• Sole proprietors, independent contractors and self-employed individuals will receive more financial support after being excluded or approved for very little money because of how the loans were calculated. Of these businesses, 70% are reportedly owned by women and people of color. Vox reported that some of these businesses received as little as $15 after applying in 2020.
• Another change is that people with non-fraud-related felony convictions in the last year and people who have defaulted on their student loans can apply to the program.