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Paycheck Protection Program (PPP) Loans – Changes Coming This Week!

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In a surprise move, President Biden announced targeted changes to the Paycheck Protection Program (PPP) loans in an effort to increase access to smaller businesses and those that were previously unable to receive funding. Starting Wednesday, February 24th through Wednesday, March 10th, there will be a 14 day exclusive PPP loan application period for businesses and non-profits with less than 20 employees.

Additional changes to the program include revisions to how sole proprietors, independent contractors and self-employed workers determine their loan amount, as well as eliminating eligibility restrictions for business owners with non-fraud felony convictions and those who are delinquent on their student loans.

These are extremely new and developing changes, so checking reputable sources such as those linked below to understand those changes and how they might affect your business is essential.

  • A Fact Sheet from the White House with additional details can be found here.
  • The SBA site is also being updated to reflect these changes here.

It is possible that further changes may be coming to the program in March. Therefore, a business with greater than 20 employees may want to consider expediting submission of their application to their lender before the changes take place on Wednesday. It appears that PPP applications submitted by larger businesses by Wednesday will continue to be processed and not face delays.

Additionally, it appears that changes are coming to the PPP loan application going forward. To encourage self-reporting of demographic data and better illustrate the impact the PPP is having across various population segments, the Biden-Harris administration will be revamping the PPP application. The applications, when updated, can be found on this page.

Of the funds allocated to PPP loans in 2021, less than half of the available funds have been used (approximately $140 Billion through 2/21/21), and the general consensus is that the approved funds of $284 Billion aren’t expected to run out. The current deadline for these funds is March 31, 2021. PPP loan data through 2/21 is available here.

The Biden Administration continues to work towards legislation including the American Rescue Plan of 2021, which could potentially be passed through Congress in March 2021 via budget reconciliation. At present, additional PPP funds of $7 Billion are included in this program.

In Closing

We will continue to provide updates as additional information is released. Additionally, we are available to assist with the loan forgiveness application process – for additional information and to have one of our team members contact you, please fill out the intake form linked here.

For more information or assistance, please contact your Berntson Porter representative at 425-454-7990. We are here to help!

Berntson Porter is here to help businesses navigate these challenging times.Visit our Resource Center for up-to-date information about COVID-19 legislation that impacts you and your business. 


     

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