April 19, 2021

Volume XI, Number 109

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April 16, 2021

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SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program

On Monday, February 22, 2021, President Biden announced changes to the Paycheck Protection Program (the “PPP”) aimed at providing relief to particularly small businesses and promoting equitable access to the PPP. Specifically, beginning on Wednesday, February 24, 2021 at 9:00 A.M. EST, the Small Business Administration established a two-week exclusivity period where only businesses and nonprofits with fewer than 20 employees will be able to apply for a PPP loan. In addition, there are four other changes to the PPP that will go into effect the first week of March, opening the program to more underserved small businesses. These include:

  • a revised PPP funding formula for sole proprietors, independent contractors and self-employed individuals to allow them to receive more financial support;

  • eliminating a restriction on PPP access for small business owners with prior non-fraud felony convictions to allow them to receive funding;

  • eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and

  • ensuring access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use an Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

It is not clear yet if there will be any regulations implementing or providing more details on these additional changes. 

Vincent IndelicatoPatrick D. WallingGrant R. DarwinLara B. MillerSeok Whee (Jason) Nam and Perry A. Laub contributed to ths article. 

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© 2021 Proskauer Rose LLP. National Law Review, Volume XI, Number 55
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Yuval Tal, Corporate Attorney, Proskauer Rose Law Firm
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Yuval Tal is a general corporate and securities lawyer with diverse experience in cross-border mergers & acquisitions, securities offerings and corporate and real estate finance.

Yuval's practice includes representing clients on financing, mergers & acquisitions (public and private, debt and equity), reorganizations, going-private transactions and structured finance, often including cross border elements. He represents clients from their formation through their sale or public offering. He also advises his clients on day-to-day...

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Jeffrey A. Horwitz Corporate & Private Equity Real Estate Attorney Proskauer Rose New York, NY
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Jeffrey A. Horwitz is a partner in Proskauer's Corporate Department where he co-heads our Private Equity Real Estate practice and runs our internationally recognized Hospitality, Gaming & Leisure Group. He also has served as co-head of Mergers & Acquisitions and as a member of our Executive Committee. Jeff is a general corporate and securities lawyer with broad-based experience in mergers and acquisitions, cross-border transactions, and long-term joint ventures. He is regularly engaged to advise boards, management teams and investors on strategic matters, from litigation to...

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Andrew Bettwy, Proskauer Law Firm, New York, Corporate and Finance Law Attorney
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Andrew Bettwy is a partner in the Corporate Department and co-head of the Finance Group. His principal focus is the representation of financial institutions, private equity sponsors, and public and privately held companies in leveraged finance and other financing transactions. Andrew represents both lenders and borrowers in a wide range of transactions involving multiple industries and diverse debt capital structures, including acquisition financings, recapitalizations, multiple lien and subordinated debt financings, debtor-in-possession and exit financings, and private...

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Lauren K Boglivi, Private Equity Attorney, Proskauer Law Firm
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Having spent her entire legal career at Proskauer, Lauren has developed a transactional practice on behalf of strategic companies, private equity sponsors and family offices. Transactions she handles include: mergers and acquisitions involving both public and private companies in the U.S. and internationally; buyouts and related financings; joint ventures; acquisitions of distressed companies; and growth and seed investment.

Lauren’s private equity clients focus on leveraged buyouts and growth capital transactions. Lauren also represents many of...

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Karen Garnett, Corporate Attorney, Proskauer Rose Law Firm, Washington DC
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Karen’s practice focuses on regulatory matters under the federal securities laws, as well as on equity finance transactions and public company advisory. Karen has extensive experience in applying and interpreting federal securities laws and regulations, including requirements governing public company registration, reporting and disclosure.

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