The Biden Administration is tweaking the PPP rules in an attempt to help small companies.
Small Business Exclusive Window
Until the evening of March 9, 2021, only businesses with fewer than 20 employees will be able to apply for aid through PPP.
Help for Self-employed/Schedule C Business Owners
- Changes include changing eligibility calculations, so that self-employed individuals receive more funds by allowing applicants to calculate their loan amount using line 7 of their Schedule C tax form (=gross income).
- Self-employed changes only available to new applicants: "We are not able to retroactively change the loan amount on any PPP loan that has already been approved by a lender and received the federal guarantee."
- The new rules doesn't go into effect until the first week of March.
Other Clarifications
- While many businesses will be prohibited from applying during the two-week window planned by the SBA, administration officials said they expected larger employers to have plenty of time to apply for PPP loans before lending authority expires on March 31.
- They also said applications submitted by larger businesses before Wednesday would continue to be processed and would not face a delay.
At this point, there is no need to worry that funds will run out, as less than half of the PPP's $284 billion in current funding has been used since it relaunched on January 11, with little concern that it will be exhausted.
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You can read more here about the announcement.
