BIDEN PROPOSED CHANGES TO PPP LOANS
President Joe Biden on Monday announced policy changes to the Paycheck Protection Program (PPP) meant to target coronavirus relief to the small minority and Black-Owned businesses.
“Small businesses are the engines of our economic progress, they’re the glue and the heart and soul of our communities. But they’re getting crushed,” Biden said in remarks at the White House. “It’s hurting Black, Latino and Asian American communities the hardest,” he continued.
Biden claims that the program “muscled out” smaller firms. Nearly 400,000 small businesses have closed or limited restrictions to control the spread of the coronavirus. He announced that his administration would change the programs’ stipulations, making it easier for sole proprietors, independent contractors, and self-employed individuals to secure forgivable PPP loans.
Biden administration officials said that for two weeks starting on Wednesday, the Small Business Administration would accept applications for forgivable PPP loans from ONLY firms with fewer than 20 employees to ensure that they don’t get over looked by larger firms.
In addition, Biden proposed “$175 million to bring community organizations in to serve as “navigators” who’ll help them through this process of application. We would also establish a hotline, with help available in multiple languages, so folks can pick up a phone and get the help they need to stay open and serve their community.”
Biden noted that his proposal would put $50 billion toward helping small businesses after the end of the PPP, which is due to expire at the end of March.
