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:
- Less restrictions on previously incarcerated small business owners
- Immigrant business owner can now apply if they have an ITIN
- If you’re delinquent on any student loans you can still apply
- Self-employed individuals with no payroll are eligible
- 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
