Five Changes to the PPP Loan Starting Today That Help Underserved Borrowers
FOR IMMEDIATE RELEASE
Media Contact:
Jennifer Sherlock
(609) 369-3482
jsherlock@jennacommunications.com
Five Changes to the PPP Loan Starting Today That Help Underserved Borrowers
Millersburg, PA (February 24, 2021) – President Joe Biden announced Monday a series of changes to the Paycheck Protection Program to help underserved borrowers. The changes are outlined below:
- Starting today, only businesses with fewer than 20 employees can apply for loans for a two-week period.
- The way loans are calculated will be revised so businesses without employees get more relief. The previous calculation — based on payroll — made the program ineffective for sole proprietors and independent contractors, including many businesses of color. The Biden administration also will set aside $1 billion in PPP loan funds for businesses without employees in low- and moderate-income areas.
- The elimination of an exclusion that prevents business owners with non-fraud felony convictions from accessing the program.
- The elimination of an exclusion that prevents business owners who are delinquent on federal students loans from accessing the program.
- Non-citizen small-business owners who are lawful U.S. residents will be able to apply for loans using individual taxpayer identification numbers.
The Paycheck Protection Program, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was rolled out last April to help businesses survive the financial blows of the coronavirus pandemic. The program is intended to incentivize small businesses to keep their workers on the payroll instead of laying them off.
Mid Penn Bank President and CEO, Rory Ritrievi, said, “Since the beginning of PPP, we have had a focus on assisting the smallest businesses. We have never set requirements for minimum loan amounts and have approved PPP loan applications as low as $600. We enthusiastically support any and all initiatives that help small businesses get the relief they need, as soon as possible.”
PPP, the Small Business Administration’s principal pandemic-relief program, is scheduled to run through March 31.
If you would like to interview Rory for more helpful tips, or to understand the second round of changes to the PPP further, please contact Jennifer Sherlock at jsherlock@jennacommunications.com.
About Mid Penn Bancorp Inc.
Mid Penn Bancorp, Inc. (NASDAQ: MPB), headquartered in Millersburg, Pennsylvania, has been serving the community since 1868. Mid Penn Bank operates retail locations throughout the state of Pennsylvania and has total assets of $3 billion. Its footprint includes Berks, Bucks, Chester, Cumberland, Dauphin, Fayette, Lancaster, Luzerne, Montgomery, Northumberland, Schuylkill and Westmoreland counties. The Bank offers a comprehensive portfolio of products and services to meet the banking needs of the communities it serves. To learn more about Mid Penn Bank, visit www.midpennbank.com.