Institute a 14-day period, starting February 24, during which only businesses with fewer than 20 employees can apply for relief through the Program. This will allow lenders to focus on serving the smallest and hardest-hit businesses.

Help sole proprietors, independent contractors, and self-employed individuals receive more financial support. Many of these types of businesses are structurally excluded from the Paycheck Protection Program (PPP) or were approved for as little as $1 because of how PPP loans are calculated. To address this problem, the Biden-Harris administration will revise the loan calculation formula for these applicants so that it offers more relief and will establish a $1 billion set aside for businesses in this category.

Eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program.  Bipartisan reforms will eliminate the one year look back restriction unless the applicant or owner is incarcerated at the time of the application.

Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program. Currently, the PPP is not available to any business with at least 20 percent ownership by an individual who is delinquent or has defaulted within the last seven years on a federal debt, including a student loan. The SBA will remove the student loan delinquency restriction to broaden access to the PPP.

Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief. The PPP statute states that all lawful U.S. residents may access the program, but a lack of guidance from the SBA has created inconsistency in access for ITIN holders like Green Card holders or those here on a visa. The SBA will address this unfair inconsistency by issuing clear guidance in the coming days that otherwise eligible applicants cannot be denied access to the PPP because they use ITINs to pay their taxes.

For more information on these reforms, visit the Small Business Administration at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.

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