The Small Business Administration ("SBA") made targeted changes to the Paycheck Protection Program ("PPP") to promote access for women-owned and minority-owned businesses and underserved communities.
The announced changes include, among other things, a two-week window (beginning Wednesday, February 24, 2021 at 9:00 a.m.) during which only businesses and non-profits with fewer than 20 employees may apply for PPP relief. Additionally, the SBA stated that by the first week of March it will:
revise the PPP loan calculation formula for sole proprietors, independent contractors and self-employed individuals who do not have employees;
eliminate a restriction that disqualifies businesses with more than 20 percent ownership by an individual who has an arrest or conviction for a non-fraud felony within the previous year;
eliminate federal student loan delinquency and default as disqualifiers; and
provide guidance ensuring that lawful non-citizen U.S. residents may use Individual Taxpayer Identification Numbers to apply for PPP relief.