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SBA to limit PPP processing to smallest biz for 2 weeks
The Small Business Administration (SBA) has announced it will implement an exclusive paycheck protection program (PPP) window for small businesses with fewer than 20 employees as directed by the Biden administration. The window will open tomorrow at 9 a.m. Eastern and end March 9 at 5 p.m. Eastern.
Of note, lenders with loans under hold or error codes will still be able to resolve these issues through the SBA’s recently issued resolution process during the two-week window.
The Biden administration issued a statement Monday outlining updates to the program in an effort to promote equitable access to relief.
“The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses,” the release stated. “The Biden-Harris administration will also make a sustained effort to work with lenders and small business owners to ensure small businesses take maximum advantage of this two-week window.”
In addition, three PPP application-related exclusions have been eliminated to further promote equitable access:
- the exclusion for borrowers with non-fraud felonies;
- the exclusion for borrowers who are delinquent on their federal student loans; and
- the exclusion for borrowers who apply with an individual taxpayer identification number.
The changes to exclusions will be implemented by the first week of March. The SBA has also stated it will set aside $1 billion of program funding for borrowers with no employees who are also located in low- and moderate-income communities. For more information, view the SBA’s website.
NAFCU will continue to advocate for program improvements and transparent guidance to ensure credit unions can lend effectively through the PPP. Stay tuned to NAFCU Today for the latest on the program from the SBA, Treasury and the administration. Access the association's PPP FAQs here.