Subscribe

* indicates required

Bank of Idaho to Make Most of New PPP Reforms

Published online: Mar 01, 2021 Articles, East Idaho Business
Viewed 3720 time(s)
Web Exclusive

IDAHO FALLS -- The Biden Administration announced Monday that several modifications to the Paycheck  Protection Program are being rolled out in order to help the country's smallest businesses. According to the Small Business Administration, the changes include a 14-day period, beginning  Wednesday, during which only businesses with fewer than 20 employees can apply for PPP relief.  Another big change is that sole proprietors, independent contractors and self-employed individuals  can base their loan calculations on gross income, rather than net income. 

"These adjustments will be game-changers for so many of our smallest businesses," said Bank of  Idaho President and CEO Jeff Newgard. "Previously, these types of businesses felt locked out of PPP  assistance. We hope these changes make them reconsider." 

Businesses affected by the Coronavirus pandemic could be eligible to receive a low-interest-rate  loans under this program and can learn more details at https://www.bankofidaho.com/cares. PPP  loans may be eligible for full or partial forgiveness if the money is used for qualifying costs and  depending on the specific rules of the program.  

Newgard said SBA programs have become so adept at helping small businesses that Bank of Idaho has  effectively added a new department solely dedicated to SBA lending. "These programs can be real life lines  for small businesses," he said, "so we're committed to getting as much of that help into our communities as  we can." 

New PPP updates include: 

• A 14-day period, starting Wednesday, during which only businesses with fewer than 20  employees can apply for PPP relief. During this period, however, applications already in the pipeline  or requiring error resolution will continue to be processed. 

• Revising the loan calculation formula for sole proprietors, independent contractors, and self employed individuals to use gross income instead of net income, as advocated by ICBA. Additional  details are expected on whether this will be limited by number of employees or otherwise. Further,  $1 billion will be set aside for PPP loans to businesses in this category without employees located in  low- and moderate-income (LMI) areas. 

• Eliminating restrictions preventing small-business owners delinquent on their federal student  loans or with prior non-fraud felony convictions from qualifying for the PPP. 

• Ensuring access for non-citizen small-business owners who are lawful U.S. residents by  clarifying that they may use Individual Taxpayer Identification Numbers to apply for relief. • The administration also said it has revised the PPP loan applications to encourage self reporting of demographic data, and it will conduct stakeholder outreach on PPP challenges. The SBA  also will launch an initiative to enhance lender engagement with opportunities for lenders to provide  recommendations and ask questions about the PPP and obtain resolution of open questions and  concerns in a more streamlined way. 

Additional PPP information and resources are available online at sba.gov. 


Share

Send to your friends!

  • Like what you read?

    Get Idaho Falls Magazine straight to your door!

  • Subscribe Today!

    Sign Up