Adds clarity on the eligibility of noncitizens who hold Green Cards or work visas
The Biden administration announced adjustments to the Paycheck Protection Program (PPP2) designed to target loans for small businesses and expand access to aid.
The changes will prioritize loans for the country’s smallest businesses, eliminate some previous eligibility restrictions on small business owners, boost support for independent contractors and self-employed workers and take “steps to ensure equitable distribution of relief.”
Here’s an overview:
▪ Prioritizing the smallest businesses: Starting Wednesday (February 24), the administration will institute a two-week period during which only companies with fewer than 20 employees can apply for loans through the PPP to “allow lenders to focus on serving these smallest businesses.”
▪ Support for self-employed workers, independent contractors, and sole proprietors: The changes include revising the calculation of loans to offer more relief and reserve $1 billion to aid these businesses. Previously, firms in these categories were “structurally excluded from the PPP” due to how loans were calculated, the White House says.
▪ Removing restrictions for prior felony convictions: Biden will eliminate restrictions that prevent businesses owned at least 20% by a person with a felony conviction within the past year from receiving loans.
▪ Removing restrictions related to student loans: Businesses owned at least 20% by a person who is “currently delinquent or has defaulted within the last seven years” on student debt and other federal loans are not currently eligible for the PPP. The SBA will eliminate that restriction.
▪ Access for noncitizens: The SBA will issue guidance making it clear that applicants cannot be denied PPP loans because they use Individual Taxpayer Identification Numbers (ITIN) to pay taxes. “The PPP statute is clear that all lawful US residents may access the program, but a lack of guidance from the SBA has created inconsistency in access for ITIN holders like Green Card holders or those here on a visa,” the White House says.
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