Biden Administration Expands Paycheck Protection Program to Reach Smaller Businesses

Starting on Wednesday, February 24, 2021, businesses with fewer than 20 employees are now granted a two-week period to apply for loans under the Paycheck Protection Program. This is great news for many smaller, minority-owned businesses who were unable to access loans from this program in the past. In this two-week period, businesses with more than 20 employees will not be allowed to apply for loans. After the two-week term comes to an end, the original eligibility requirements will go back into effect. The Paycheck Protection Program has also been expanded to cover sole proprietors, independent contractors, and other self-employed parties as well.

Of the move to expand PPP eligibility for small business owners, the Biden Administration announced in a White House press release, “98 percent of small businesses have fewer than 20 employees. They are Main Street businesses that anchor our neighborhoods and help families build wealth. And while the Biden-Harris administration has directed significantly more relief to these smallest businesses in this round of PPP than in the prior round, these businesses often struggle more than larger businesses to collect the necessary paperwork and secure relief from a lender. The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses. The Biden-Harris administration will also make a sustained effort to work with lenders and small business owners to ensure small businesses take maximum advantage of this two-week window.”

Of course, this is welcome news to small business owners throughout the United States, and if you are a small business owner, or run your business entirely on your own, the time to act is now. If you have any additional questions about the Paycheck Protection Program, how to apply for a loan, or you simply have any other business-related questions, please do not hesitate to reach out to our knowledgeable Rockland County business law attorney today. Our firm is here to assist you in any way we can.

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