SBA PPP Loan Updates

by Angel Morales February 25, 2021

written by Angel Morales February 25, 2021

IMPORTANT UPDATES TO THE

PAYCHECK PROTECTION PROGRAM

Independent Contractors (YOU) may qualify for funding

On February 22, the White House and the SBA announced steps the agency is taking with the Paycheck Protection Program (PPP) to promote equitable relief further America’s mom-and-pop businesses.

The announcement states that during the next two weeks the SBA will only accept PPP loan applications from businesses with fewer than 20 employees.

If your business has under 20 employees, you may qualify to be prioritized for a PPP loan through March 10.

Please review the following changes to the Paycheck Protection Program:

Starting, February 24th, 2021

1. Starting February 24th, 2021, the SBA established a 14-day exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.

Starting Next Week

2. The SBA will allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants.

3. The agency will eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.

4. Also, the SBA will eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP.

5. Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

What does this mean for the Independent Contractors? YOU can also apply.

See important details below:

■ Self-employed individuals and independent contractors will qualify

■ Use the Schedule C on your tax returns in your loan amount calculation

■ Borrowers with delinquent federal student loans can apply

■ Non-citizens who are lawful US residents with ITINs can apply

■ 5 Year Term and 10 Month Payment Deferral

■ 1% Interest Rate and More Flexibility with Loan Forgiveness

DEADLINE TO APPLY IS MARCH 31, 2021

PLEASE CALL IF YOU NEED ASSISTANCE

he NextGen Business Lending team of advisors is available to answer questions and help you navigate today’s complex financial environment. Get started today with our no-cost consulting by calling 888.786.3984.

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