On March 3, 2021, the Small Business Administration announced changes to the Paycheck Protection Program (PPP) for self-employed individuals.
The changes include:
- Self-employed business owners with no employees will be eligible for a loan equal to their 2019 or 2020 gross income, divided by 12, multiplied by 2.5.
- Self-employed and sole proprietors can also refinance an EIDL Loan made between January 31 and April 3, 2020.
- New timeframe to apply provides a dedicated 2-week window, starting Wednesday, February 24, where only businesses with fewer than 20 employees will be able to apply for PPP loans.
- establishes a $1 billion set aside for these businesses without employees located in low- and medium-income areas
- Expands PPP eligibility to small business owners with non-fraud felony convictions
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