PPP Priority Funding Opens Today for Small Businesses with Less than 20 Employees 

If you haven't applied for the second round of PPP loans yet and you have less than twenty (20) employees, you may want to consider applying right away as the Small Business Administration has just opened a two-week window, starting today, February 24, in which small businesses with less than twenty employees will receive priority funding.  

If you were previously unable to apply for the first round of PPP, you may be eligible to apply for it now if your business meets the following criteria: 

  • Sole proprietors, independent contractors, and self-employed persons (The Biden Administration revised the rules for these types of businesses.  Loans for sole proprietors will now be based on gross income, excluding many expenses. This will allow unprofitable businesses to qualify and allow profitable businesses to receive larger loans.) 

  • Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard) 

  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans' organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) that meets the SBA industry size standard. 

If you received a First Draw PPP Loan, you may be eligible for the second round if you: 

  • previously received a First Draw PPP Loan and will or have used the full amount only for authorized uses 

  • have no more than 300 employees; and 

  • can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 

Contact your banking institution to get the application started or visit the SBA website for more information. 

Clarissa Heneghen