Updates to the Paycheck Protection Program (PPP) are designed to expand access and eligibility, particularly for sole proprietors and micro-businesses, according to Main Street Alliance, an advocacy group for small businesses. These changes include:
- Beginning tomorrow, the program has instituted a 14-day period during which only businesses with fewer than 20 employees can apply for relief through the program.
- A revised loan calculation formula will help sole proprietors, independent contractors, and self-employed individuals receive more financial support since many were structurally excluded from the PPP because the need was based on Schedule C profits. The Biden administration has set aside $1 billion for businesses in this category without employees if they are located in low- and moderate-income areas.
- The elimination of an exclusionary restriction that prevents small business owners with prior nonfraud felony convictions.
- Elimination of an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans.
- Ensuring access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
