Notice: PPP extended until May 31, 2021

Paycheck Protection Program loans must be submitted by May 31, 2021.

Biden Administration takes steps to promote equitable access to SBA relief

On February 22, 2021, President Biden announced the following changes to SBA's COVID-19 relief programs to ensure equity:

Specifically, from February 24 to March 9, 2021, SBA had a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This gave lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31, 2021.

SBA also made four additional changes to open the PPP to more underserved small businesses than ever before. SBA is working with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA is strengthening its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. With the Interim Final Rule and FAQ issued on March 3, 2021, SBA:

• Allowed 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

• Eliminated an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal

• Eliminated 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

• Ensured 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
   

A critical goal from Congress for the 2021 round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides. Congress set a $15 billion set-aside for small and LMI first draw borrowers. With existing policies, the current round has only deployed $2.4 billion to small LMI borrowers, in part because a disproportionate amount of funding in both wealthy and LMI areas is going to firms with more than 20 employees. The less-than-20 exclusivity period combined with the changes to expand access for sole proprietors, ITINs, returning citizens, and student loan debt will help us achieve congressional goals.

Interim final rules

SBA has issued the following Interim Final Rules related to PPP:

2021

• Paycheck Protection Program as Amended by the Economic Aid Act

• Paycheck Protection Program Second Draw Loans

• Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act

• Revisions to Loan Amount Calculation and Eligibility

• Paycheck Protection Program as Amended by the American Rescue Plan Act

 

2020

• Paycheck Protection Program

• Affiliation Rules

• Additional Eligibility Criteria and Requirements for Certain Pledges of Loans for the PPP

• Promissory Notes, Authorizations, Affiliation, and Eligibility

• Seasonal Employers

• Disbursements

• Requirements – Corporate Groups and Non-Bank and Non-Insured Depository Institution Lenders

• Nondiscrimination and Additional Eligibility Criteria

• Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request

• Requirements for Loan Increases for Partnerships or Seasonal Employers

• Eligibility of Certain Electric Cooperatives

• Treatment of Entities with Foreign Affiliates

• Second Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan and Lender Reporting

• Requirements – Loan Forgiveness

• SBA Loan Review Procedures and Related Borrower and Lender Responsibilities

• Eligibility of Certain Telephone Cooperatives

• Interim Final Rule on Revisions to the First PPP Interim Final Rule

• Additional Revisions to First PPP Interim Final Rule

• Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules

• Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule

• Additional Eligibility Revisions to First PPP Interim Final Rule

• Certain Eligible Payroll Costs (Fishing Boat Owners) 

• Appeals of SBA Loan Review Decisions Under the PPP

• Treatment of Owners and Forgiveness of Certain Nonpayroll Costs

• Additional Revisions to Loan Forgiveness and Loan Review Procedures