PPP Revisions Target Smallest Businesses

The Biden administration has announced several reforms to the popular Paycheck Protection Program (PPP) to bring greater relief to the smallest and most vulnerable businesses. Among other things, the administration is imposing a two-week moratorium on loans to companies with 20 or more employees and focusing on smaller businesses. It is also changing several program rules to expand eligibility for the 100% forgivable PPP loans.

PPP IN A NUTSHELL

The CARES Act, passed in the early days of the COVID-19 pandemic, established the PPP to help employers cover payroll during the resulting economic downturn. The program is open to almost every U.S. business with fewer than 500 employees - including sole proprietors, self-employed individuals, independent contractors and not-for-profits - affected by the pandemic.