PPP loans will begin prioritizing companies with 0-20 employees

UPDATE: The Payroll Protection Program has been extended through May 31, 2021.

February 24, 2020 – NEW! Changes to the Paycheck Protection Program announced this week by President Biden will put more pandemic relief money into the hands of business owners with smaller companies. Do you have 20 or fewer employees – or no employees at all? As your advocate, we want you to know about this new focus that could benefit you.

Background: The Paycheck Protection Program (PPP) allows small businesses to obtain forgivable low-interest loans through the Small Business Administration (SBA) to cover the costs of payroll, rent, utilities and other operating expenses.

  • From February 24 – March 10, only companies with 20 employees or fewer are eligible for loans. Previously, larger companies (who were more likely to have existing connections with lending institutions and get served first) were also eligible
  • The loan calculation formula has been changed to make it easier for sole proprietors and independent contractors with no employees at all to get increased payouts

Additional changes make loans accessible to business owners who are delinquent on student loans, have non-fraud felony convictions or are non-citizens (but lawful U.S. residents).

Details about the PPP loan:

  • 1% interest rate
  • Covers expenses for 24 weeks
  • Provides 2.5x your monthly payroll costs (up to $10 million)
  • Payments may be deferred for six months
  • Forgivable if certain conditions are met

This program officially ends at the end of March. President Biden is currently pitching a new stimulus program (the American Rescue Plan) that may include additional funding. We will keep you updated.

Interested in applying for a PPP loan? Fill out an application here. Then submit it to a Small Business Association participating lender. Click here to find eligible lenders in your area.

As an advocate who believes in your business, we’re sharing resources and guidance that could help you out right now. Because we know you want to do everything you can to save money, we’re also here for you with free quotes that could lower your rates on business insurance (or even improve your coverage). Ask a licensed Mylo agent to review your current policy and try to beat it.

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