Biden Administration’s PPP Reform Effective This Week
On Monday, February 22, 2021, the Biden administration announced several reforms to the Paycheck Protection Program. One began last Wednesday, February 24, and the rest are set to be implemented this week. During the 14-day period, only businesses with fewer than 20 employees can apply for PPP relief that started last Wednesday and extends until March 10. However, during this period, applications already in the pipeline or requiring error resolution will continue to be processed.
The other reforms are set to take effect this week, including the revised loan calculation formula for sole proprietors, independent contractors, and self-employed individuals for use of gross income instead of net income. Further, $1 billion will be set aside for PPP loans to businesses in this category that do not have employees and that are located in low- or moderate-income areas. The SBA has issued updated forms for borrowers and lenders reflecting these changes and step-by-step loan amount calculations.
- Access the new first draw application form.
- Access the new second draw application form.
- Access the first draw Schedule C gross income form.
- Access the second draw Schedule C gross income form.
Please complete these forms and email to our dedicated PPP team.
Need additional guidance? We’re here to help. View more details on first and second draw loans here.
Source: Tennessee Bankers Association