FROM HELLO ALICE
On Monday morning, the Biden administration announced exciting changes to the Paycheck Protection Program (PPP) that expand access to the country’s smallest businesses. New rules for the federal loan program prioritize relief for sole proprietors, small businesses with fewer than 20 employees, and businesses located in low-income communities. For two weeks starting today, Feb. 24, only these businesses can apply for the program. Larger businesses will now have to wait until March 10 to apply.
Details are still emerging, but here are some of the biggest changes:
- More funding for sole proprietors, independent contractors, and self-employed individuals. The loan amount formula for these businesses will change from using net profit to gross income (from IRS tax form 1040, schedule C).
- $1 billion reserved for businesses with no employees who are also located in low- and moderate-income communities
- Expanded eligibility for immigrant entrepreneurs, formerly incarcerated business owners, and those behind on student loan payments
We’re here to help you understand what these changes mean for you and your business. Join Matt Brewster, Hello Alice’s director of capital partnerships, on Friday, Feb. 26, at 1 p.m. ET for a live Q&A session about the updated PPP loan. You can submit questions for Matt in advance by leaving a comment on the Hello Alice Instagram.