On February 22, 2021, the Biden administration announced several changes to the Paycheck Protection Program (“PPP”) recognizing that the initial round of the PPP left several very small businesses out while larger, well-connected businesses received funds quickly.  In an effort to reach smaller, minority-owned businesses and sole proprietors, and to ensure that these entities are not crowded out by larger borrowers, only businesses with fewer than 20 employees have an exclusive two-week period to apply for a PPP Loan.  This exclusive 2-week period commences on Wednesday, February 24, 2021 and ends on Tuesday, March 9, 2021.

Additionally, the PPP Loan calculation formula for sole proprietors and self-employed individuals will be revised, and some eligibility rules will also be changed, including the PPP being opened up to small business owners with non-fraud related felonies, those delinquent on their federal student loans and some non-citizen residents, such as green card holders or those in the country on visas.

The SBA will likely issue additional guidance in connection with the administration’s decisions in the coming days.

On February 17, 2021, new PPP Loan Applications were released:

• First Draw PPP Loan Application: https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form.pdf
• Second Draw PPP Loan Application: https://home.treasury.gov/system/files/136/PPP-Second-Draw-Borrower-Application-Form.pdf

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to COVID-19.