President Joe Biden is set to change the main US coronavirus aid program for small businesses on Monday to try to reach smaller, minority-owned businesses and sole proprietors left behind in previous rounds of aid.

Starting Wednesday, 02/24/2021, only businesses with fewer than 20 employees can apply for loans for a two-week period. Here’s the major changes:

• The way loans are calculated will be revised so businesses without employees get more relief. The previous calculation — based on payroll — makes the program ineffective for sole proprietors and independent contractors, including many businesses of color. Also, $1 billion in PPP loan funds for businesses without employees in low- and moderate-income areas will be set aside. Businesses that lack employees (payroll) can now apply for PPP loans based on their gross income.

• 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 student 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.

More information will follow as the SBA makes updates to their website.