Senate passes bill to extend PPP loans
Last month, the U.S. Small Business Administration announced some changes to its paycheck protection program in hopes of making it easier for sole proprietors and independent contractors to receive adequate loan amounts. Now it looks like these people may have time to take advantage of the changes.
The Senate on Thursday, March 26 voted 92-7 extend the program deadline from March 31 to May 31. President Joe Biden is expected to sign the bill, which SBA until June 30 to process the loans, soon to be in effect.
In February, the SBA announced some changes to the program.
These changes to the PPP included:
- Establish an exclusive 14-day PPP loan application period for businesses and nonprofits with less than 20 employees.
- Allow sole proprietors, independent contractors and independent workers to receive greater financial support by revising the P3 funding formula for these categories of applicants.
- Remove an exclusionary restriction on access to P3s for small business owners who have previously been convicted of non-fraudulent crimes, in accordance with a bipartisan congressional proposal.
- Eliminate restrictions on access to P3s for small business owners who have had difficulty making federal student loan repayments by eliminating delinquencies and defaults on federal student loans as preventing participation in P3s.
- Ensure access to non-citizen small business owners who are legal residents of the United States by specifying that they can use an individual taxpayer identification number to apply for the P3.
“The significant policy changes we are announcing further ensure inclusion and integrity by increasing access and much-needed support to Main Street businesses that anchor our neighborhoods and help families build wealth,” said Michael Roth, senior SBA adviser, in a statement.
Before the changes, many sole proprietors and independent contractors were “structurally excluded” from P3s because of the way loans were calculated. The White House has referred to cases of companies approved for loans as low as $ 1. LL