February 22, 2021
Flash Report – Biden-Harris Administration and SBA Prioritize the Smallest of Small Businesses
“The SBA is a frontline agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural, and other underserved communities in meaningful ways,” says SBA Senior Advisor Michael Roth. “While reported data illustrates we have made real strides in ensuring these funds are reaching underserved communities, we believe we can still do better. The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families build wealth.”
Building on a month of strong results, the Biden-Harris Administration and the SBA announced today that they will be taking steps to further promote equitable relief for America’s mom-and-pop businesses by revising certain aspects of PPP. Specifically, the SBA will:
- Institute a 14-day period during which only businesses with fewer than 20 employees can apply for relief through PPP.
- Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula and creating a $1 billion set-aside for these categories of applicants.
- Eliminate the exclusionary restriction that prevents some small business owners with prior non-fraud felony convictions from obtaining relief through the PPP.
- Working with the Departments of the Treasury and Education, the SBA will remove the student loan delinquency restriction to broaden access to the PPP.
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
The 14-day exclusivity period will start on Wednesday, February 24, 2021 at 9 a.m., while the other four changes will be implemented by the first week of March. The SBA is working on the program changes and will communicate details throughout this week.