In an attempt to target funding to small businesses, the Biden administration has amended the rules governing the Paycheck Protection Program (“PPP”).
First, only businesses with fewer than 20 employees may apply during the period from February 24 to March 2.
Second, effective in early March, the formula used to calculate the amount of the PPP loan has been relaxed, enabling sole proprietors, independent contractors and the self-employed will now qualify for more money.
It’s also been reported that changes will be made to the application process to make loan receipt easier for some non-citizens, people with past non-fraud felony convictions and people who defaulted on student loans.
This round of the PPP is scheduled to end March 31. Stay tuned to see if another round arises.