On Monday, Feb. 22, the White House announced several changes to the Paycheck Protection Program (PPP) that went into effect on Wednesday, Feb. 24. These changes are intended to further target “the smallest businesses and those that have been left behind in previous relief efforts.”1 If you’re a small business owner in need of financial assistance, you may find these changes helpful in securing a PPP loan: Change #1: Two-Week Exclusive Application Period According to the White House, approximately 98 percent of small businesses in America have fewer than 20 employees, yet these small businesses have found it difficult to compete with larger companies for PPP loan access. There will be a 14-day exclusive application period, which is designed to help lenders focus solely on serving these small businesses.1 Change #2: Adjustments to the Loan Calculation Formula These include sole proprietors, independent contractors, and self-employed individuals. In past instances, these business owners have received as little as $1 in PPP assistance or been excluded from receiving funding altogether. In conjunction with an adjustment to the loan calculation formula, $1 billion will be set aside for businesses without employees located in low- and moderate-income areas.1 Change #3: Reduce Non-Fraud Felony Restrictions Small business owners in many sectors of the economy have been impacted by the ongoing pandemic. While vaccination rollouts are helping to slow the spread of COVID-19, businesses across the country are continuing to grapple with capacity limitations, shutdown orders, and other economic hurdles. If you’re a small business owner struggling to make ends meet, now may be an opportune time to apply for a PPP loan. If you have any questions regarding this process or your eligibility, please contact our office. We may be able to point you in the direction of additional professional resources or assist you in assessing your eligibility. |
1. WhiteHouse.gov, February 22, 2021 |
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information only. FMG Suite is not affiliated with VANCO Financial Group. |

Changes to Paycheck Protection -- PPP
March 01, 2021