News

Starting today, February 24, 2021, the SBA has opened up a special priority window for employers with less than 20 employees to include the self-employed and one owner businesses.  This special priority window will close on March 9 and regular applications with more than 20 employees will resume.

Key characteristics:

1. Less restrictions on previously incarcerated small business owners
2. Immigrant business owner can now apply if they have an ITIN
3. If you’re delinquent on any student loans you can still apply
4. Self-employed individuals with no payroll are eligible
5. Priority window from February 24 to March 9, 2021

The gross receipts test still applies where your revenue in any quarter of 2020 was not more than 75% of the prior year’s same quarter of 2019 or you can compare 2020 to 2019.

For self-employed individuals, take your net self-employment earnings or 92.35% of your estimated average monthly revenue for 2019 times 2.5. 

This would be a “First Draw” loan for anyone that didn’t receive PPP last year.

Don’t forget about the “Targeted EIDL Grant” if you qualify, you can receive up to $10,000, see references below.

Key takeaway is more stimulus for small business owners and the self-employed in 2021!

Sources/Reference:

First Draw

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Targeted EIDL

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans#section-header-6

SBA Guidance

https://www.sba.gov/sites/default/files/2021-01/PPP%20–%20How%20to%20Calculate%20Maximum%20Loan%20Amounts%20for%20First%20Draw%20PPP%20Loans%20%281.17.2021%29-508.pdf