Policies & Issues

Here’s What’s New With the Paycheck Protection Program

Policies & IssuesMar 03, 2021

Here’s What’s New With the Paycheck Protection Program

President Joe Biden revised PPP to prioritize small business owners who may have missed out on previous rounds.

President Joe Biden has implemented changes to the Paycheck Protection Program as small businesses continue to struggle amid the COVID-19 pandemic.
New York—President Joe Biden announced changes to the Paycheck Protection Program last week as his administration looks to prioritize small businesses who may have been overlooked in previous rounds.

Launched in April 2020 as part of a $3 trillion COVID-19 relief bill, the Paycheck Protection Program offers forgivable loans to small business owners.

Its rollout was rocky, fraught with administrative and technical issues for both banks and small businesses, from system crashes to a lack of direction from the federal government.

The program also took heat after reports surfaced that money was going to big businesses as mom-and-pop stores struggled, an issue this most recent round of changes looks to address.

The Biden-Harris Administration noted that while the changes are no substitute for passing a more comprehensive relief bill, they will provide some assistance to small businesses struggling amid the COVID-19 pandemic.

Here are the latest changes.

1) There’s a 14-day application period reserved for businesses with fewer than 20 employees.

The updated program has set aside a two-week period, from Feb. 24 to March 10, during which only businesses with fewer than 20 employees can apply.

This group represents 98 percent of all small businesses, but has received only 45 percent of PPP funding to date, according to the Small Business Administration (SBA).

The White House’s statement noted that these businesses, in particular, sometimes struggle to gather the necessary paperwork to apply for the loans.

The exclusive application period will allow lenders to focus solely on serving this group.

The deadline for all PPP applications in this latest round of funding is March 31.

2) Greater support is available for self-employed individuals.

In previous rounds of the PPP, sole proprietors, independent contractors, and self-employed individuals were sometimes excluded from the program because of the loan calculation formula, approving some for loans as little as $1.

The self-employed account for a majority of all businesses, said the Biden Administration, noting that 70 percent are owned by women and people of color.

The loan calculation formula will be revised to offer more relief to self-employed applicants.

There will also be $1 billion set aside for businesses that fall into this category and are located in low-to-moderate income areas.

3) Restrictions for owners with non-fraud felony convictions have been eliminated.

Business owners with a non-fraud felony arrest or conviction may be eligible under the updated program.

Previously, a business was ineligible for PPP if it was at least 20 percent owned by an individual with an arrest or conviction related to financial assistance fraud within the previous five years or any other felony within the previous year.
Looking to expand access to the program, the Administration will adopt reforms from the PPP Second Chance Act, which was co-sponsored by Sens. Ben Cardin (D-MD), Rob Portman (R-OH), Cory Booker (D-NJ), and James Lankford (R-OK).

The bipartisan proposal will remove the one-year lookback restriction.

The exception does not apply to those incarcerated at the time of the application.

4) Small business owners behind on federal student loan payments may be eligible.

The new program would eliminate the restriction preventing small business owners who are delinquent on federal student loans from applying.

The previous program excluded businesses with at least 20 percent ownership by someone who is currently delinquent or has defaulted on a federal debt within the last seven years, including student loans.

Millions of Americans are delinquent on student loans, noted the White House, including a disproportionate number of Black individuals.

The SBA will work alongside the Departments of the Treasury and Education to remove the restriction.

5) Non-citizen small business owners can now apply.

Applications will be open for non-citizen small business owners who are lawful U.S. residents. They will be able to use Individual Taxpayer Identification Numbers (ITIN) to apply.

While the program allowed lawful U.S. residents to apply, there was confusion surrounding access for some ITIN holders, like Green Card holders or those here on a visa.

The SBA will issue clear guidance to prevent eligible applicants from being denied access to the program.

Additional Measures
On top of the five changes listed above, the administration said it will take additional steps to ensure relief is distributed fairly.

Looking to address waste, fraud and abuse, the next round of PPP loans will be approved contingent on passing SBA fraud checks, the Treasury’s Do Not Pay database—a service that checks payment eligibility—and public records.

Manual loan reviews will be conducted by the SBA for the largest PPP loans and a random sampling of other loans.

In an effort to promote transparency and accountability, the PPP application has been redesigned to “encourage self-reporting of demographic data and better illustrate the impact the PPP is having across various population segments.”

The SBA website will also be updated with resources for business owners to navigate the relief options available to them and information about how to complete the applications.

The Administration has been reaching out to small business owners, as well as CEOs of major banks, to better understand the challenges both owners and lenders face and to revamp the program to better serve small businesses.

To learn more about PPP or to apply, visit the SBA’s website.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

AuctionsSep 27, 2022
In Betty White’s Blockbuster Estate Sale, Jewelry Held Its Own

Fine jewelry comprised three of the auction’s top 10 lots, though it could not top her director’s chair or scripts from “The Golden Girls.”

CrimeSep 27, 2022
3 Suspects in Beverly Hills Smash-and-Grab Robbery Arrested

A total of four suspects are now in custody with police still on the lookout for the remaining two.

ColumnistsSep 27, 2022
Creative Connecting: Fun Ideas for Holiday 2022 In-Store Events

From a “whodunnit” murder mystery to a permanent jewelry party, Duvall O’Steen and Jen Cullen Williams share a wealth of suggestions.

Brought to you by
6 Steps to Start a Dynamic Company Culture

Learn how to better serve your employees, customers and community by having a dynamic and supportive company culture.

MajorsSep 27, 2022
Stuller Releases 2 Updated Catalogs Ahead of the Holiday Season

“Mountings 2023-2024” and “Diamonds & Gemstones 2023-2024” offer a vast selection of options to create custom pieces.

Weekly QuizSep 22, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
Events & AwardsSep 27, 2022
ICA’s 2023 Congress Will Be Held in Dubai

The event will be hosted by the Dubai Multi Commodities Centre from Feb. 15-17.

IndependentsSep 26, 2022
Roberson’s Fine Jewelry to Close After 42 Years

The store’s liquidation sale will showcase the mix of classic and unique jewels it’s known for stocking.

Brought to you by
Committing to an Ethical Diamond Business

While ethical mining is essential to a diamond business, they represent only a fraction of the responsibility bestowed on jewelers.

CollectionsSep 26, 2022
Go ‘Inside the Dream’ of Bulgari Via a New Documentary on Amazon Prime

It follows Creative Director Lucia Silvestri as she crafts the brand’s high jewelry collections.

Recorded WebinarsSep 26, 2022
Watch: What Jewelers Should Know About Insurance

From safeguarding showcases to appraisal liability, insurance experts Mark Devereaux and Andrew Chipman share insurance tips for jewelers.

TrendsSep 26, 2022
Vahan Collabs With Wolf on a Jewelry Box

It’s the first time in 50 years the brand has made something other than jewelry.

Events & AwardsSep 26, 2022
Texas Jewelers Association Rolls Out New Format for Design Competition

The competition takes place in tandem with TJA’s annual convention, known as the Texas Jewelers Roundup.

CollectionsSep 23, 2022
Pandora Reimagines Keith Haring’s Art in New Collection

The limited-run collection features figures from Haring’s iconic street art on charms, bracelets, rings, and more.

GradingSep 23, 2022
GIA Career Fair Returns to Carlsbad

The Gemological Institute of America also announced plans for events in New York and London in 2023.

SourcingSep 23, 2022
See the Items in Gem Legacy’s 4th Anniversary Benefit Auction

One hundred percent of proceeds will benefit the nonprofit’s silicosis prevention initiative.

CollectionsSep 23, 2022
Piece of the Week: Emily Weld Collins’ Amulet

Inspired by antique coins, it depicts a “hippocamp” from Greek mythology.

EditorsSep 22, 2022
4 Things Seen and Heard at the 2022 HardRock Summit

Gemstones Editor Brecken Branstrator dishes on the latest color to trend, the show floor buzz, and more from Denver.

TrendsSep 22, 2022
There’s a New Book on Tiffany & Co.

Written by historian Vivienne Becker, it accompanies this summer’s Tiffany jewelry exhibition at London’s Saatchi Gallery.

Supplier BulletinSep 22, 2022
Using Commerce Data to Outshine the Competition in the Jewelry Industry

Sponsored by Bloomreach

SourcingSep 22, 2022
First Diamond Recovered From Burgundy’s Ellendale Restart

Burgundy also announced the retail launch of its diamond brand, Maison Mazerea.

Events & AwardsSep 22, 2022
JCK Industry Fund Now Accepting Applications

Organizations with a project or initiative aimed at bettering the jewelry industry are encouraged to apply.

Lab-GrownSep 21, 2022
An Updated Look at the Lab-Grown Diamond Market: Size, Pricing, and More

As the end of 2022 draws near, National Jeweler offers another deep dive into lab-grown diamond market data.

TrendsSep 21, 2022
These Are the Diamond Jewels to Stock for the Holidays

These trending-yet-timeless pieces are no-brainers for customers in search of the perfect gift.

SourcingSep 21, 2022
A Day in the Life: Daniel Namdar, Fancy Color Diamond Specialist

Namdar joins a long line of diamond experts, but his love of the trade was learned rather than inherited.

Lab-GrownSep 21, 2022
Looking Ahead: 4 Factors That Could Shape Lab-Grown Diamonds’ Future

Growing supply and falling prices likely will make differentiation a necessity and a reality, according to analyst Paul Zimnisky.

AuctionsSep 21, 2022
Egyptomania at Sotheby’s: See the Egyptian Revival Jewels Heading to Auction

The auction house is celebrating 100 years since the discovery of King Tut’s tomb.

MajorsSep 21, 2022
Claire’s Expands Walmart Partnership

The chain’s jewelry and accessories are now available in 2,500 Walmart locations.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy