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On Monday, the White House announced a two-week window for availability of new PPP loan funding for SBAs, nonprofits and sole proprietors with less than 20 employees. In order to reach the smallest businesses, Paycheck Protection Program loans are only available for a two week period starting tomorrow February 24th and ending on March 9th, 2021.
As noted on the SBA website, the most important goal from Congress for this latest round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides. Congress set a $15B set-aside for small and LMI first draw borrowers. With existing policies, the current round has only deployed $2.4B to small LMI borrowers, in part because a disproportionate amount of funding in both wealthy and LMI areas is going to firms with more than 20 employees. The less than 20 exclusivity period, combined with the changes to expand access for sole proprietors, ITINs, returning citizens, and student loan debt will help SBA meet this and other Congressional goals.
Additionally in the announcement, the administration noted it will change the PPP loan calculation formula to help sole proprietors, independent contractors, and self-employed individuals receive more financial support.
For full information on how to apply for these new PPP loans, please visit the SBA resource.
MIP Fund Accounting is here to help you grow with your mission as we move toward resiliency in 2021. Find out more information on our MIP Fund Accounting software by exploring our solutions.
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