Thursday (2/25) Webinar: Changes coming to PPP Loan Rules to expand access
Small business owners and sole proprietors: join Scholz Nonprofit Law this Thursday, February 25th, at 6pm for a webinar explaining how to apply for the PPP and recent changes to the rules that should make it easier to qualify.
Register here. An overview of these changes is below.
Important Changes to PPP Rules
In an effort to focus lender’s attention on small borrowers, starting this Wednesday, February 24th, the SBA will impose a 14 day freeze on loans to borrowers with more than 20 employees. This is an opportunity for businesses with 20 or fewer employees, including individual sole proprietors, to jump to the front of the line … so reach out now to a lender to apply for a PPP loan.
Also, SBA announced today it will make PPP rules more friendly to sole proprietors.
- Currently, PPP loans to sole proprietors are calculated based on borrower’s “profits” or “net income.” This method of calculation has frustrated borrowers who have not generated significant “profits.” Forthcoming rules (we have not seen them yet) will determine loan eligibility for sole proprietors based on changes in “gross revenue,” rather than on “profits.” This change should benefit many more sole proprietors because it will let unprofitable businesses apply for a PPP.
- SBA will also change the rules to allow a person with a felony conviction that is not related to fraud or who is delinquent on student loan debt to apply for a PPP loan.
Please spread the word in your networks and PLEASE SHARE OUR RESOURCES from our website. We have short videos on the PPP for Sole Proprietors/Small Businesses both English and Spanish, along with sample applications and other guidance.
Updates on Second Draw PPP Process
In other PPP news, the SBA has added some filters to its PPP processing software to catch fraud. These filters, which often identify insignificant mistakes or typos, have slowed down the approval process … frustrating borrowers. Avoid these delays by working with your lender to insure your PPP application is prepared accurately and carefully.
If you have any questions,
Note: The guidance provided by Scholz Nonprofit Law is intended as general guidance and providing such advice does not establish a lawyer-client relationship.