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Member Alert | Payroll Protection Program and Small Business Update

(February 26, 2021)

This week, the U.S. Small Business Administration announced it is taking steps to prioritize equitable relief for the smallest of small businesses in the latest round of Paycheck Protection Program (PPP) funding that opened a month ago. Small businesses employ nearly half the American workforce.
The program will be made more accessible to underserved borrowers through these changes:

  • Establish a 14-day, exclusive PPP loan application period (February 24 through March 9) for businesses and nonprofits with fewer than 20 employees
  • Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
  • Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
  • Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and
  • Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

For more information from the Small Business Administration on these changes, click here.

The U.S. Chamber of Commerce hosted a informational session with Bharat Ramamurti, White House National Economic Council Director, Neil Bradley, U.S. Chamber Chief Policy Officer and Jeanette Mulvey, U.S. Chamber Content Director yesterday to go over the latest changes to the Payroll Protection Program and the specific focus on minority-owned businesses and those with fewer than 20 employees. That session was recorded and can be viewed here. The U.S. Chamber has more financial assistance resources for businesses as well as additional, on-demand video content.

For additional information on the Payroll Protection Program or other business aid opportunities, please visit our COVID-19 Resource Hub.