July 8 update:
The PPP application deadline is now extended to August 8!
June 30 update:
Blue Vine is now the only bank still accepting applications until 5p ET today: www.bluevine.com; 888-216-9619
June 27 update:
The SBA has released the updated application! You can find it here:
https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form.pdf
There are only a few banks still accepting applications. Some of them have updated their online application language, some have not. Here are some we found still accepting applications - we have reached to them via social media to ensure they update their applications.
Endeavor Bank: https://www.bankendeavor.com/contact/contact-us
Blue Vine: https://www.bluevine.com/paycheck-protection-program/
Newtekone.com: https://partners.newtekone.com/caresact/business-lending/
Deadline is June 30 to submit!!
*******************************************************************************************************************
June 25 - Last week, Defy Ventures—along with two small business owners and supported by the ACLU and the Washington Lawyers Committee for Civil Rights—filed suit against the US Small Business Administration. The case’s purpose is to challenge the SBA’s criminal background check requirements that shut out predominantly Black and Latinx small business owners from receiving the help they need to stay afloat amidst the economic impact of COVID-19. There is nothing to be gained and so much to lose when we create unnecessary and destructive barriers for returning citizens, who want nothing more than a fair chance to contribute to society through hard work and entrepreneurship. Rules like these only perpetuate institutionalized racism and contribute to the cycle of recidivism that Defy Ventures is committed to ending. It's bad policy and it needs to stop.
Yesterday, the SBA issued a new rule and application form for the Payment Protection Plan program. It changes the criminal record questions and now bars only the following individuals:
- Owners of 20% or more of the applicant business who are currently incarcerated or under indictment for a felony
- Owners who have been convicted/are on probation or parole for felonies involving fraud/bribery/embezzlement/false statements in loan applications within the last 5 years
- Owners who have been convicted/are on probation or parole for a felony within the last 1 year
While this new rule came only 6 days before the deadline, it is a win for our case and certainly in direct response to our lawsuit.
Unfortunately, we can’t declare victory just yet: the SBA has not yet posted the revised rules on their website or even attempted to publicize the change. More importantly, banks have not updated their online applications with this rule change, so they still have the old rules posted. Until this happens, it is not clear if newly eligible business owners can submit applications at this time.
Our attorneys are going to continue with the litigation, and point out to the Judge, among other things, that SBA’s last-minute rule change has no real effect unless the June 30 application deadline is also extended. Given the late-breaking nature of this rule change and the delay in implementation, we are hopeful the court will see fit to allow for extra time for applications.
We were able to get a copy of the updated paper application through our attorneys and have posted it here for anyone to download in case it is helpful.
Updates will be posted as they are available!