Paycheck Protection Program Revised to Serve Small Employers with Fewer than 20 Employees

Small Business Administration’s opens up the application process on Wednesday, February 24 

Effective on Wednesday, February 24, 2021, at 9 am EST,the Small Business Administration [SBA] will open up a special, 14-day Paycheck Protection Program [PPP] loan application period, reserved exclusively for businesses and nonprofits with fewer than 20 employees 

This new loan option gives lenders and community partners more time to work with the smallest businesses on application submission, while still ensuring that larger PPP-eligible businesses have plenty of time to apply for and receive support before the program expires on March 31, 2021.  

Four additional changes to the program include: 

  • Allows sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants.  
  • Eliminates an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions.   
  • Eliminates PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP.  
  • Ensures access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP. 

Most small businesses, including sole proprietorships and independent contractors, were often blocked from securing relief money due to a program rule that based loan size on annual profit reported on taxes. This caused unprofitable businesses to be ineligible for aid and left thousands of applicants qualified for only a minuscule amount of loan money.  The new formula, which Small Business Administration officials said would be released soon, will focus instead on gross income. That calculation, which is done before any expenses are deducted, will let current unprofitable businesses qualify for loans. For further information on the changes to the PPP, visit the Coronavirus Relief Options page on the SBA website. 

Cardinal is here for you. 

All PPP loans require the submission of payroll reports. If Cardinal does your payroll, we can provide these required reports for you to submit to your bankjust let us know the time period. Email your request to We invite you to visit Cardinal’s Coronavirus/COVDID-19 Employer Resources & Information