The administration will also change some eligibility rules, starting in the first week of March. Freelancers, individual owners and independent contractors can now qualify for more money. Previously, they were either completely excluded or received only $ 1 because the loan amounts were calculated based on the number of employees.
The loan program will also be open to small business owners with non-fraud related crimes, those who are in default on their federal student loans and some noncitizens, such as Green Card holders or those in the country with visas – all who were previously excluded.
“While the Paycheck Protection Program has provided urgent relief to many companies across the country, the initial PPP round last year left out many family and minority-owned businesses, while larger, well-connected companies raised funds. quickly, “an official government said in a call with reporters on Sunday.
Congress created the forgivable loan program last March to help small business owners who had to close their doors because of state and local pandemic blocking measures. The first round of loans took time to reach smaller companies, and those without an existing relationship with a creditor may have lost out.
The program ended in August, but lawmakers added resources in December and reopened the program so that homeowners could apply for a second loan. Congress directed new loans to those with fewer than 300 employees who saw at least 25% of their revenues fall during the first, second or third quarters of 2020. Lawmakers also dug out $ 12 billion for minority-owned companies.