In a letter from the White House, President Biden explains why it’s so important to get small businesses help now. He notes that 400,000 small businesses have closed since the beginning of the pandemic and highlighted how Black, Latino, and Asian American communities have been the hardest hit. Biden notes that the passing of aid has been a bipartisan effort, however, more must be done. The President took this statement and segued into the new changes to the PPP – a few of which are:

– Only businesses with fewer than 20 employees will be able to apply for loans beginning on Wednesday, Feb. 24, 2021. This period will last a total of two weeks.
– Revised PPP loan calculation formula for sole-props, independent contractors and self-employed applicants to ensure they receive more relief, and establish a $1 billion set aside for businesses in this category without employees located in LMI areas.
– Expanded PPP eligibility to small business owners with non-fraud felony convictions.
– Allowance for firm owners who are delinquent on their federal student loans to receive a PPP loan.
– Expanded PPP eligibility to non-citizen small business owners who are lawful U.S. residents.

Biden closed his remarks by doubling down on his promise to microbusiness owners and stated: “Getting our economy back means bringing our small businesses back. And that’s what we’re going to do. That’s what I’m doing today. We’re going to focus. The program ends at the end of March, but for the next two weeks, the only folks who can apply for that PPP money are businesses with fewer than 20 employees.”

Thanks to the Association for Enterprise Opportunity for sharing this information!

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