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President Biden updates Paycheck Protection Program

  • 1.  President Biden updates Paycheck Protection Program

    Posted 02-24-2021 09:09
    To update our January 18, 2021 posting, on February 22, President Biden announced reforms to the Paycheck Protection Program (PPP) that will make it easier for small businesses -- especially those with fewer than 20 employees -- to gain access to PPP funds.

    "The administration also announced a 14-day period that begins on Wednesday that allows businesses with fewer than 20 employees a chance to sign up for the loans. The administration said that it is not uncommon that these businesses need more time to file the appropriate paperwork. The statement said that self-employed individuals will also have a chance to qualify for more financial support."

    Read more: https://www.foxbusiness.com/economy/biden-administration-announces-reforms-to-ppp-to-assist-small-businesses

    See also the White House PPP Fact Sheet (Feb. 22, 2021) for further information: https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/22/fact-sheet-biden-harris-administration-increases-lending-to-small-businesses-in-need-announces-changes-to-ppp-to-further-promote-equitable-access-to-relief/


    To supplement our recent coverage in the January 11, 2021, AAPL Governmental Affairs Report we would like to remind members that the latest enacted coronavirus stimulus package reopened the Paycheck Protection Program (PPP). The PPP is available not only to large corporations but to sole proprietors (i.e. those filing Schedule C income tax returns) and to independent contractors (1099 workers), among other eligible entities, as administered under the authority of the Small Business Administration (SBA). The PPP provides loans to small businesses due to impacts related to COVID-19. The loans may also be forgiven if certain requirements are met.

    PPP Fact Sheet and Program Guide: https://bench.co/blog/operations/paycheck-protection-program/

    Per the SBA announcement, the "SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA will begin accepting applications for Second Draw PPP Loans on January 13, 2021." Read more.

    Specific information for independent contractors:
    PPP Loans for Independent Contractors (SBA)

    For more information about PPP eligibility and other helpful resources please read more below:

    https://www.gibsondunn.com/small-business-administration-publishes-interim-final-rules-for-first-draw-and-second-draw-ppp-loans/

    and

    https://www.nfcc.org/resources/blog/using-your-ppp-loan-as-a-self-employed-worker/

    For general information on the recently enacted $900 billion coronavirus relief package: Read more.


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    Russell Cohen
    AAPL Governmental Affairs
    rcohen@landman.org
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