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February 24, 2021 | Posted in:

New PPP Changes for Small Businesses and the Self-Employed

Earlier this week, President Biden announced several adjustments to the SBA’s Paycheck Protection Program (PPP), which provides forgivable financial relief to help businesses stay afloat and continue paying employees as we endure the COVID-19 pandemic. The new changes are geared to help funds get into the hands of the smallest businesses.
 

The latest changes:

  • A two-week exclusivity period for businesses with fewer than 20 employees

    Beginning February 24, 2021, the SBA is halting the application window for new general PPP loan applications. Instead, applications will only be accepted from businesses and nonprofits with fewer than 20 employees. According to the SBA, this is 98% of small businesses. If you have questions on eligibility, see our past article here. In-process applications that were submitted prior to the exclusivity period will still be processed.
     

  • Revised loan calculation for sole proprietors, independent contractors, and self-employed individuals

    Self-employed applicants are now permitted to use a modified formula based on their Schedule C tax form. This change is anticipated to go into effect the first week of March and is aimed at increasing the amount of eligible relief for these types of businesses, especially if they were unprofitable. More guidance on the exact calculation will be forthcoming.
     

  • Elimination of three PPP disqualifiers

    The new guidelines ease restrictions to PPP loans and now permit access for business owners who:

    • Are in default or delinquency on their federal student loans,
    • Have prior non-fraud felony convictions,
    • Are non-citizen but still lawful U.S. residents (must have Individual Taxpayer Identification Number)

While the new 14-day exclusivity period began as of 9:00am on February 24, the other changes will be implemented the first week in March as we are still awaiting final guidance and communication from the SBA.
 

Contact Us

There are just about five weeks left until the scheduled March 31 end date for PPP Round 2. If you have less than 20 employees, take advantage of this 14-day exclusivity window. If you need assistance, please contact us.

Alloy Silverstein is here to help. From PPP loan forgiveness to new PPP loan applications, our accountants and advisors are equipped with the latest resources and relationships to help your business during these trying times. Call us at 856-667-4100 or email questions to solutions@alloysilverstein.com for more information.
 
View our latest PPP and ERC webinars at www.alloysilverstein.com/events
 
 
COVID-19 Resource Center from Alloy Silverstein CPA Firm Accountants and Advisors NJ

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