President Biden Paycheck Protection Program (PPP)

Published: March 1, 2021

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PPP How to Apply

 Megan Henney did an article in Fox Business on how to get a Paycheck Protection Program (PPP) loan under the Biden administration rules. Small businesses have a two-week window to apply for the loan that later the government can turn into a grant. The plan is for small businesses that have twenty or fewer employees. Larger organizations can not apply within this time frame. The purpose of this program is for the hardest hit enterprises that have twenty employees or less, which is a way to keep them on the job even if it is for a short time.

On February 22, 2021, the White House rolled-out under the Bidin administration its version of the Payroll Protection Program for small businesses. Unlike the other two programs before this one, this program will only run for 14 days, starting Wednesday, February 24, 2021, to March 9, 2021. Dissimilar to the other two programs, this program is for those small businesses who genuinely need this money. Those entrepreneurs/small businesses with 20 or fewer employees have the green light to pursue funding for their business.

This program focused on minority and mom-and-pop businesses to help them keep their doors open and was missed in the first two rounds of the PPP.  Katie Lobosco of CNN also did an article on this same subject; this program could correct how the early two programs were launched and received by those who were not struggling small businesses. Nick Leiber of Bloomberg Business Week discusses how this program is meant for independent, self-employed small business owners. The difference with this program, it is not limited to businesses that have employees. Still, those who have no employees and are independent and self-employed are now eligible to get some form of PPP money.

So the new concept is if you are a struggling small business and trying to make ends meet while working for yourself and running a small business while having limited workers, now is the time to apply for a forgivable PPP loan through SBA. Look at it as a grant with some strings attached, which means you do not have to repay the loan, provided you act within the criteria presented within the program. President Biden has stated some 400,000 small businesses have closed during this pandemic and may never reopen again. And there are millions more just hanging on by a thread. For more information on Bidens PPP, click here.

The Third-Round of The Paycheck Protection Plan

One of the most notable changes in the third round of PPP is the green light for entrepreneurs/small businesses to be first to apply for loans/grants for those who have twenty employees or less this time around. Thus, the program was designed for those who were less fortunate than their larger counterparts to get assistance but has not gone that way. Proceeds have gone to those who are better connected to their banks and have the accountants and attorney who can go through the paperwork and find an area in which larger organizations could take advantage of their firms.

The fourteen-day window has some distinct differences over the other two programs. Firstly from Wednesday, February 24, 2021, to March 9, 2021, small businesses have an exclusive window of opportunity to apply for these extraordinary loans., The Biden administration has stepped up for the small companies, which is 98% of businesses operating in the U.S.

Small business has an advocate in the White House; Joe Biden. Secondly: the calculation for the proceeds to the PPP has changed to include independent contractors, self-employed workers, and sole-proprietorships. These changes are game-changers to those small businesses that need financial help. An additional 1 billion dollars has been set aside for these low to moderate-rate enterprises.

Thirdly small business owners who have a felony on their record can now apply for such government benefits providing they are not incarcerated at the time of application, and it is not a fraudulent offense. Fourthly business owners who are delinquent in their student loans in this program can submit for this government loan. Finally, those Non-U.S. citizens who are lawful U.S. residents can apply and are eligible and can use their Individual Taxpayer Identification Number (ITIN). For more information on these changes, click here.

The New PPP Forgiveness Rules

The new program does not have many strings attachments to those small businesses that are self-employed. These businesses can use the proceeds in the same manner, they would use their compensation. The SBA Explainer provides details on how this program works. The tweaks on these programs offer more money for these small businesses that otherwise would not be achievable. 2021, PPP that launched January 11, 2021, will stay in effect until March 31, 2021, or until all funds have been used.

The $284 billion set aside for the PPP is part of a $900 billion pandemic relief program. They can borrow up to 2.5 times their payroll cost or up to $10 million for first-time borrowers with 500 employees. Thus, is the formula used for the self-employed workers, with a 1% interest rate and a five-year term. The entire PPP over-view can be found here.

Those organizations with 300 or fewer employees can get 2.5% of their payroll; however, the cap is $2 million. Restaurants can borrow up to 3.5% of their payroll. These rules are for first-time users of the PPP. Nevertheless, for second-time users of the program, the recipients must show a 25% drop in revenue over the same corresponding time in 2019 and 2020. Rules for the second-time borrower can be found here.

Final Thoughts

The Biden administration PPP is fairer for entrepreneurs/small business owners. The loan or grant provided that the rules adhere to is forgivable. From application to approval, the time frame to obtain the loan is two weeks. As a Small Business Consultant-Specializing in Marketing If you’re a business owner and need help filling out your application or need fast access to unsecured working capital, Click here.

Must be open and operating for at least 12 months with monthly sales of $10,000 or more. (5 Easy Steps – Powered by ARF Financial) call us Toll-Free (866) 400-3040  or Email:  or go to our Website:

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