Since the beginning of the pandemic, our team has actively worked with local, state, and federal leaders to advocate for the resources that will have the most impact on the ability of the business community to successfully recover. We know that small businesses are among the hardest hit by the economic crisis. They are also employers of […]
Since the beginning of the pandemic, our team has actively worked with local, state, and federal leaders to advocate for the resources that will have the most impact on the ability of the business community to successfully recover. We know that small businesses are among the hardest hit by the economic crisis. They are also employers of our workforce, a source of new private-sector jobs, and they sustain the vibrancy of our communities. Ensuring their vitality is critical to our forward progress. With this in mind, I want to highlight changes made to the Paycheck Protection Program (PPP) [recently] that target small businesses.
[On Feb. 24], a 14-day exclusivity period began, where PPP applications will be limited to businesses with fewer than 20 employees. This effort intends to reduce disparities in funding access and will allow lenders to focus on providing more financial support to the smallest of businesses, including sole proprietors, independent contractors, and self-employed individuals. Of these businesses, those without employees are 70 percent owned by women and people of color. These businesses have been disproportionately impacted by the pandemic and have often struggled to access recovery resources. The loan-calculation formula will also be revised to offer more relief to these applicants.
The updated program also includes: a $1 billion set-aside for sole proprietors, independent contractors, and self-employed individuals in low- and moderate-income areas; eliminates the restriction preventing small-business owners previously convicted of non-fraud felonies from eligibility; removes the student-loan-delinquency restriction for small business owners; and ensures access for non-citizen small-business owners who are lawful U.S. residents. The PPP is still scheduled to close for all applicants March 31, 2021.
Our team stands ready to help your business navigate these changes and other questions you may have about resources. Please contact us at support@centerstateceo.com for assistance. Additionally, we have complied a list of additional federal, state, local, and other resources available for businesses on our website: https://www.centerstateceo.com/business-resources/covid-19-business-resources.
Robert M. Simpson is president and CEO of CenterState CEO, the primary economic-development organization for Central New York. This article is drawn and edited from the “CEO Focus” email newsletter that the organization sent to members on Feb. 25.