Small Business Administration Changes Allow Family Child Care Providers to Apply for the Paycheck Protection Program

Through tomorrow, Tuesday, March 9, 2021, family- and center-based child care providers can apply for Paycheck Protection Program (PPP) loans during an exclusive application period. This dedicated application period for loans to sole proprietors and businesses with fewer than 20 employees gives lenders and community partners more time to work with the smallest businesses to submit their applications.

The PPP, first enacted in the CARES Act, aims to help small businesses retain their existing workforce by providing forgivable loans to cover payroll, mortgage interest, rent, and utility expenses. Since March, the PPP has provided much-needed financial support to small businesses, however, very small businesses, including family child care providers and other small child care programs, have struggled to access these loans. In addition to the exclusive loan application period, the Small Business Administration (SBA), which oversees the PPP, has  announced additional changes to reach more underserved small businesses than ever before, including:

• Revising the PPP’s funding formula for sole proprietors, independent contractors, and self-employed individuals to allow these applicants to receive more financial support;
• Removing student loan debt delinquency as a disqualifier to allow small business owners who have struggled to make student loan payments to access PPP loans; and
• Clarifying that noncitizen small business owners who are lawful U.S. residents may use an Individual Taxpayer Identification Number to apply for the PPP.

More information, including how to find a lender, is available on the SBA’s website. Additionally, the Office of Child Care’s webpage, Early Care and Education Providers: Taking Advantage of the New Small Business Administration Loan and Grant Programs, has information targeted at family- and center-based providers, including:

• Two national webinars to help you understand and access the PPP—one video for family child care (FCC) educators and one video for early care and education (ECE) programs; and 
• Several resources for small businesses to help FCC educators and ECE programs learn more about the PPP and navigate the challenges created by the pandemic.

The exclusive application period ends Tuesday, March 9, 2021, at 5:00 p.m. EST. Applications for all businesses are due by March 31, 2021, however, program funding may run out in the meantime, so act fast to take advantage of this opportunity!