Small Business Owners.
On Monday, February 22, the Biden Administration changed crucial Paycheck Protection Program (PPP) rules in an effort to help the smallest companies receive funds.
The newly introduced changes include a 14-day exclusive window for applications from smaller businesses. Beginning Wednesday, February 24, the Small Business Administration (SBA) will only accept PPP applications from companies with fewer than 20 employees.
- If your company has more than 20 employees, First Internet Bank can continue to review your application and have it in queue for submission, but they will not be accepted for review until after March 9
- If your application is already with the SBA for review, the administration has indicated that processing will continue
Other announced changes will require additional clarification (and, most likely, updates to our software platform and documentation), so they are not considered “final” at this time:
The changes also aim to help sole proprietors, independent contractors and self-employed individuals receive more financial support through a new method of calculating loan amounts. If you meet this definition, please know that we await further instruction from SBA regarding:
- Calculating loan amounts (this change may require an update to our software as well as new forms) for loan requests that have not yet been submitted
- Reviewing and calculating forgiveness requests
Other notable changes include:
- Those with recent felony convictions not tied to fraud will now be able to apply, as will those who are delinquent or in default on federal student loan debt
- Business owners who are not United States citizens, but who are lawful residents, are eligible for loans and may apply for relief by using their Individual Taxpayer Identification Numbers (ITINs)
We are pleased with these changes; they are intended to help a number of small businesses who previously qualified for very little relief. However, the newly-introduced changes are significant; we appreciate your patience as we await further instruction from the SBA.
Additionally, here is an update we think will make Paycheck Protection Program (PPP) borrowers smile. The Small Business Administration (SBA) can finally begin accepting the revised Form 3508S, making the forgiveness process easier for loans of $150,000 or less. To use this new form, just log in to the First Internet Bank Forgiveness portal.
We will continue to provide updates regarding the PPP program through email, as well as our website . If you have any questions about this or any other loan issues, please contact our PPP Team at email@example.com.