PPP Exclusive 14-Day Small Business Window in Process Now
Filed under:Tax Advisory: U.S. Federal
The White House announced Monday that beginning February 24 and ending March 9, an exclusive 14-day window would open up for small businesses with fewer than 20 employees to apply for PPP loans. This window applies to nonprofit organizations as well, and to businesses pursuing a first or second PPP loan.
In addition to the 14-day small business window, a modified loan formula will be employed for sole proprietors, independent contractors and self-employed business owners, allowing them to receive more funding than in the past by using their gross income in the application. Clarification and further details are expected shortly on this updated formula.
Another update is expanded eligibility to allow PPP funds to reach more businesses. Small business owners with past non-fraud felony convictions are now eligible to apply, and also those who have defaulted or been delinquent on student loan debt. In addition, lawful non-citizen U.S. resident business owners can apply using their Individual Taxpayer Identification Number (ITIN).
What does this mean for businesses with more than 20 employees? Many banks are still accepting applications, but will hold off on submitting them to the SBA until the end of the 14-day window. We urge all interested borrowers to check with their banker and work with their CPA to get applications ready, and to not delay as the PPP program closes March 31, 2021.