Earlier this week, the White House announced a number of changes to the Paycheck Protection Program. The SBA and Treasury have not issued any guidance on these updates as of this afternoon, so we are not sure how they will practically be put into play yet. In the meantime, we have summarized the key points below and will keep you updated with any further developments as they arise.

• Schedule C filers will now be able to calculate their PPP loans based on their gross receipts instead of their net income. Without additional guidance, we do not know how this new calculation will work, what it means for borrowers who already received funds, when the changes will be submitted, whether an amended application can be submitted, etc. However, since only about half of the current round PPP funds have been disbursed so far, it probably makes sense to hold off submitting an application until these questions are answered.
• An additional $1 billion in PPP funds will be set aside for schedule C filers.
• From 2/24 – 3/09/21, only businesses with fewer than 20 employees will be allowed to have their PPP applications submitted to the SBA. Businesses with more employees can continue submitting their applications to their lenders, but the lenders will not be able to send them to the SBA until 3/10.
• Visa and Green Card holders with Individual Taxpayer Identification Numbers (ITINs) will now be eligible to receive PPP loans if all other requirements are met.
• Any business with at least 20 percent ownership by an individual who is currently delinquent or has defaulted on federal student loan debt will now be eligible for a PPP loan if all other requirements are met.

Click here to see the full White House briefing. Stay tuned for additional information!