The new administration is looking to make changes to the Paycheck Protection Program (PPP). PPP was created as a forgivable loan program for small businesses impacted by COVID-19 and was included in the CARES Act of 2020. Now, from February 24 through March 9, the Small Business Association (SBA) is limiting approvals to businesses with fewer than 20 employees. The Biden administration noted that 98 percent of small businesses fit into this category. The goal is to get more money to small businesses that have a harder time accessing capital than their larger counterparts.

A further noteworthy change is the loan calculation formula, which will be revised so that the self-employed are eligible to get larger loans. Applicants will be able to use the gross income listed on their tax returns, rather than their net profit, to calculate their maximum loan amount. Many self-employed people were “structurally excluded from the PPP or were approved for as little as $1,” explains a Biden administration fact sheet that describes the proposed changes.

RCAC is an approved small business association lender, if you or someone that you know owns a business that serves rural communities, you can apply for a PPP loan here: https://www.rcac.org/lending/paycheck-protection-program-ppp/