New changes to the Paycheck Protection Program
The new changes include a two week application window, open exclusively to businesses with less than 20 employees.
HARRISONBURG, Va. (WHSV) - On Monday, Feb. 22, 2021 President Joe Biden announced changes to the Paycheck Protection Program (PPP). His goal is to help the nation’s smallest businesses.
Allison Dugan with the Valley’s Small Business Development Center says, this could be life saving for those small “Mom & Pop” type businesses nationwide.
“Jobs are everything right? People are counting on their jobs and small businesses are the lifeblood of our community and so I think this is really a hopeful addition to making sure it’s a level playing field, that everyone can try to access these funds,” Dugan said.
The new changes include a two week application window, open exclusively to businesses with less than 20 employees. The application window opened on Wednesday, Feb. 24, 2021 and will allow bank lenders to focus solely on smaller businesses. After the window closes, there will be plenty of time to take care of other larger applicants.
Dugan says, the best change however, looks to help out individual entrepreneurs.
“Sole proprietorship and self employed are able to use their gross revenues for calculation of their eligibility, rather than their net. So, that means they’ll have more ability to apply for those funds,” Dugan said.
The latest round of PPP opened in January, in which Congress set aside $15-billion for small business first-time borrowers. So far, only $2.4-billion have been given out mainly to businesses with more than 20 employees.
As the program expires on Wednesday, March 31, the hope with these changes is to lend out more of that allotted money.
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