Paycheck Protection Program To Focus On Businesses With 20 Or Fewer Employees

According to a White House press release the Paycheck Protection Program will, for a period of 14 days, only be available to businesses with fewer than 20 employees. The 2-week period is scheduled to begin Wednesday, February 24, and is being implemented in an effort to make sure that these very small businesses do not get excluded from receiving money through the program.

In addition to that 2-week period to focus on very small businesses, other changes being made to the Paycheck Protection Program include:

• PPP loans will be made available to small-business owners with non-fraud felony convictions.
• PPP loans will be made available to business owners who are delinquent on student loans.
• PPP loans will be made available to those who are non-citizens but legal U.S. residents (use of ITIN to apply for relief).
• Establishing a $1 billion set aside for sole proprietors, independent contractors and self-employed individuals.

They are also working to:

• Address fraud, waste, and abuse
• Promote transparency and accountability by improving the PPP loan application
• Improve the Emergency Relief Digital Front Door
• Learn more about challenges and opportunities in the implementation of current emergency relief programs
• Enhance the current lender engagement model

VGM will continue to monitor this program and update you on any additional changes that are made. Please reach out to Craig Douglas or Mark Higley if you have questions or need additional information.