The Small Business Administration recently announced upcoming changes to the Paycheck Protection Program.
Starting on Wednesday, February 24th, there will be a 14-day exclusivity period for businesses with less than 20 employees:
• From 9:00 am on February 24th to midnight on March 9th, the SBA will only accept applications from borrowers with fewer than 20 employees.
• Applications already submitted by lenders to the SBA before the start of the exclusivity period will still be processed.
• During the exclusivity period, SBA will reject any new applications that have 20 or more employees.
• When counting employees, each employee counts as one regardless of whether they are full-time, part-time, or seasonal.
Additionally, there is a revised formula for Schedule C filers:
• Beginning in early March, Schedule C filers will be able to calculate their maximum PPP loan amount using the gross income on line 7 of IRS Form 1040 Schedule C rather than line 31.
• Additionally, $1 billion will be set aside for Schedule C applicants that do not have employees and that are located in low- and moderate-income (LMI) areas.
Learn more about additional changes that may provide additional opportunities for your small business here.
It is an honor to represent you in the United States House of Representatives, and I always enjoy hearing your thoughts on issues before Congress and how they affect our communities on Long Island. Please do not ever hesitate to reach out to my office at (631) 289-1097. To receive email updates on this important issue and more, please subscribe to my e-newsletter at zeldin.house.gov.
Best Regards,
Lee Zeldin
Member of Congress