Applying for 2021 Round of PPP
President Biden has made important changes to the latest round of PPP loans, expanding inclusion for a variety of businesses and prioritizing applications from those with fewer than 20 employees.
Companies that have already received PPP assistance can apply for a second loan and, depending on the business, forgiveness policies remain similar.
New PPP loan requirements include these helpful changes:
- Only businesses with fewer than 20 employees will be able to apply for PPP loans starting on Feb. 24, 2021 and for the following 14 days. Although 98% of small businesses do have fewer than 20 employees, most of them could not access PPP loans during the first days of the pandemic, and reported problems summitting applications and receiving the loans. This change gives the smallest firms priority.
- Sole proprietors, independent contractors, and self-employed individuals will be allowed to receive up to $25,000 in financial support. Under the previous formula, businesses with this type of structure received limited resources or didn’t qualify for loans. This change lets them qualify.
- Restrictions on applying for PPP loans will be lifted for business owners with non-fraud felony convictions. Previously, applicants owning 20% or more of a business who were convicted of a fraud-related felony within the past five years, and those convicted of any other type of felony a year prior to the application, were ineligible. Now, those with non-fraud felony convictions may apply.
- Restrictions for business owners who are delinquent on their federal student loans will be lifted. Previously, individuals owning 20% or more of a business who were delinquent in federal debt — including student loans — were ineligible. Now owners that are delinquent on federal student loans can apply for PPP loans.
- By using their Individual Taxpayer identification Number (ITIN), non-citizen businesses owners who are lawful U.S residents can now apply for PPP loans without impediment. During earlier rounds of PPP, green card holders without a Social Security Number (SSN) reported difficulty in accessing loans. Under the new PPP, having an ITIN will be sufficient.
Companies that have already received PPP assistance can apply for a second loan and, depending on the business, forgiveness policies remain similar.
For more information in how to apply for PPP loans please visit the Small Business Administration website.