Changes to the Paycheck Protection Program (PPP) loan program aim to better reach very small businesses and those owned by people of color —and particularly those who struggled to access the program during the first rounds of funding last year. The changes, which will be implemented on February 24, 2021, include:

• A special 14-day application period, starting 2/24/21, during which only businesses with fewer than 20 employees can apply for PPP.
• Revised and amended loan calculation formula for sole-proprietors, independent contractors and self-employed applicants to ensure they receive more relief. A $1 billion set aside has been created for businesses in this category without employees and those located in low to moderate-income areas.
• Expanded PPP eligibility to small business owners with prior non-fraud felony convictions who were previously ineligible to apply.
• Applications from business owners who are delinquent on their federal student loans may now apply for PPP. 
• PPP eligibility for non-citizen small business owners who are lawful U.S. residents. These business owners may use Individual Taxpayer Identification Numbers (ITINs) when applying for relief.

Read the Wall Street Journal announcement and the U.S. Small Business Administration announcement (scroll past the PPP links).

Community banks, such as Century Bank, and the nonprofit lenders DreamSpring and LiftFund are accepting applications.

The PPP loan program is slated to close on March 31, but don’t wait to apply! All lenders need a few weeks to process applications before the closing date.