Small Business Administration Paycheck Protection Program
The U.S. Small Business Administration, has extended the deadline for the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers. This round of the PPP will continue to be processed through participating financial institutions and will be available through May 31, 2021. This round is open to both First Draw PPP Loans and a Second Draw PPP Loan. In general, a First Draw PPP loan is for eligible borrowers who did not receive a PPP loan before the program closed in August 2020. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan and used the full amount of their First Draw PPP loan on authorized
expenses, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts.
SBA announced four additional changes to open the PPP to more underserved small businesses than ever before. While these changes are being implemented, SBA will work with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA will strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. SBA will:
o 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;
o Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony
convictions, consistent with a bipartisan congressional proposal;
o Eliminate PPP access restrictions on small business owners who have struggled to make student loan
payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
o 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.
Since the program has been extended, Team RED has set up additional webinars to provide businesses with
information and assist with questions. April webinars are listed below:
• April 15 –10 am Click HERE to register.
• April 23 –1 pm Click HERE to register.
• April 30 –9:30 am Click HERE to register.
