New PPP Rules Released by SBA

03/04/2021 3:03 PM | ACRAsphere Blog Team

The Paycheck Protection Program (PPP) has been a helpful tool for many CRM firms during the pandemic. With most classified as essential businesses, the program provided opportunities for firms to continue to operate despite increasing costs and uncertainty.

ACRA has been helping CRM firms navigate the ever-changing PPP as new rules have been issued by the Small Business Administration (SBA), from outlining specifics of the program to addressing problems with the PPP and overhead with congressional offices. Now new rules have been published on Wednesday that particularly affect firms that identify as sole proprietors or independent contractors - particularly if they have already received a PPP loan in the past.

From Politico:

New Biden administration rules overhauling the way small business loans are doled out will potentially leave thousands of sole proprietorships and the self-employed on the sidelines, despite the president's pledge to give them better access to pandemic aid.

The Small Business Administration quietly decided that the benefits that President Joe Biden promised to "one-person businesses" won't be available to many of those who have already received aid from the program. The agency concedes those businesses were shortchanged under earlier rules — some received as little as $1 because of the way loans were calculated — but says it isn't able to let PPP borrowers increase existing loans. That means the more favorable new rules will only be available to new loan applicants.

The decision is drawing criticism from Democrats and business owners as well as PPP lenders responsible for doling out the loans. But the SBA is not relenting, and now top Democrats on the House and Senate Small Business committees say they want to make the benefits more widely available.

Read the full Politico article here for additional insights. ACRA will continue to monitor and engage on the issues that are most important to CRM firms, including this one. If your business is affected by these new rules, let us know.

The new SBA rules are available here

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