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PPP rules change to reach small businesses

Written on Feb 25, 2021

By Jessica Salerno, OSCPA senior content manager 

President Joseph Biden this week changed the Paycheck Protection Program application eligibility to only allow businesses with fewer than 20 employees to apply for two weeks, ending on March 9. 

Man smiling for camera.

“The idea there is they are giving businesses that have a small number of employees better access than they had the first time they went through,” said Ray Lampner, CPA, partner-in-charge at Sikich, LLP. 

The Biden administration said this is an effort to reach minority-owned and small businesses and sole proprietors. Starting Wednesday, the Small Business Administration will only accept applications for the PPP from companies with fewer than 20 employees. The applications for others will open back up on March 10. 

Lampner said he did hear of issues in the first round of funding with smaller companies having trouble getting loans and continues to hear that issue in this round.   

“It was a surprise that this came through, but this really shouldn’t have a huge impact on your company if you have more than 20 employees,” he said. “You should take this time to get your application ready to go and then on March 10, you can apply and should have enough time to get everything through.”