Changes to PPP Rules: Only Businesses with Fewer Than 20 Employees Can Apply for Relief for the Next Two Weeks
February 25, 2021
For the next two weeks, the only businesses that can apply for relief through the Paycheck Protection Program are ones with fewer than 20 employees. The two-week period started this Wednesday, and this change is one of several immediate adjustments to the rules of the program.
Another change modifies the loan’s funding formula for independent contractors, self-employed individuals and sole proprietors. Calculations will be based on gross income, rather than net income. This is expected to take effect the first week of March.
Borrowers convicted of a non-fraud felony or delinquent on their federal student loans will also have access to the loan program starting in March. Business owners who are Green Card holders or in the U.S. on a visa can also use an Individual Taxpayer Identification Number (TINs) to apply.
Congressional lawmakers are working to get the next relief package, named the America Rescue Plan, into law by mid-March. Read the White House Fact Sheet.