PPP Loan Program to Focus on Businesses under 20 Employees

PPP Loan Program to Focus on Businesses Under 20 Employees

The Biden administration announced on Monday, February 22nd, a two-week period starting Wednesday, February 24, 2021, during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans.

The restricted application window accompanied by additional actions the White House said it is making to further expand the PPP loan program to the smallest businesses. The administration also will:

  • Change the PPP loan calculation formula to help sole proprietors, independent contractors, and self-employed individuals receive more financial support. In addition, $1 billion will be set aside for businesses in this category that don’t have employees and are located in low- and moderate-income areas. Details of the changes have not yet been released.
  • Eliminate an exclusionary restriction preventing small business owners with prior non-fraud felony convictions from obtaining relief through the PPP.
  • Eliminate an exclusionary restriction preventing small business owners who are delinquent on federal student loan payments from securing a PPP loan.
  • Allow noncitizen small business owners who are lawful U.S. residents to use individual taxpayer identification numbers (ITINs) to apply for relief.

The administration said the 14-day restricted application period is designed to focus on small businesses that have fewer than 20 employees. Observing that small businesses struggle more than larger businesses to collect the necessary paperwork and secure a PPP loan through a lender, it is expected that the targeted application window will free up lenders to focus on serving these smallest businesses.

The White House statement also said that the administration would continue to work with lenders and other stakeholders to address PPP processing delays caused by anti-fraud validation checks that must be completed before loan guaranty approval is granted. The statement said the U.S. Small Business Administration (SBA) would continue to work with lenders to create streamlined processes to resolve issues as quickly as possible while still working to ensure taxpayer funds are spent wisely.

The SBA reported Monday that it approved more than 1.9 million PPP loans for a total of $40 billion from Jan. 11 through Feb. 21. The application window for the current $284 billion iteration of PPP is scheduled to close on March 31.

Keeping Pace with the Year-End Process

Keeping Pace with the Year-End Process

As the calendar pages fall away, the final quarter of the calendar year is approaching the final month tomake sure everything is addressed properly. Now is the time to assess progress with closing out thepayroll year and to take stock of what still needs to be...

read more
MA Extends COVID-19 Emergency Paid Sick Leave Mandate

MA Extends COVID-19 Emergency Paid Sick Leave Mandate

Just hours before expiration, Massachusetts Gov. Charlie Baker signed legislation extending the mandate for state employers to continue providing emergency paid leave related to COVID-19. These COVID-19 paid leave obligations will now continue until April 1, 2022. MA...

read more
Update on MA PFML: Benefits Increase While Rates Fall

Update on MA PFML: Benefits Increase While Rates Fall

There have been recently announced changes to the Massachusetts Paid Family Medical Leave laws. On October 1, 2021, the Department of Family and Medical Leave announced that starting in 2022, the maximum benefit under PFML will increase, yet employer contributions...

read more
Federal & MA COVID-19 Leave Laws Set to Expire September 30

Federal & MA COVID-19 Leave Laws Set to Expire September 30

As of September 27, 2021, both the federal and the Massachusetts COVID-19 leave laws are set to expire on September 30, 2021, and it does not appear that either the Federal or State legislatures will be extending these laws. Click here for information on the specifics...

read more
Understanding When to Use a State W-4

Understanding When to Use a State W-4

What is a State W-4 Form? A state W-4 Form is a state-specific tax document that serves as a guide for employees to calculate their state tax withholding requirements that translates into a specific amount based on each paycheck to go towards state taxes. It works...

read more
Protect your Business with Periodic Payroll Audits

Protect your Business with Periodic Payroll Audits

For many small and medium-sized businesses, processing payroll presents the greatest risk for costly errors and the least protected financial activity when it comes to potential fraud. Both exposures can be well managed with a periodic payroll audit. Use the Symphony...

read more