Changes to PPP Rules
In a call to reporters, the Biden Administration announced that several small rule changes to the Paycheck Protection Program would be made to specifically help companies that have 20 employees or less. Starting this Wednesday, these specific companies will have a two-week period where exclusive access to the PPP will be provided to them in order to ensure they receive their fair share of the funds currently available. This change has been made as a direct response to the higher level of difficulty that many small business owners have had securing funding from lenders compared to larger, more lucrative companies.
Other rules and changes have been made as well that would open eligibility to a larger group of business owners who were previously excluded as well. In fact, one of the most significant changes will apply to self-employed entrepreneurs and independent contractors who previously only qualified for as little as $1 due to calculations being based on the number of employees. Changes in this section will be made to match the ones made for small farmers and agricultural businesses, which allowed them access to aid.
Focus on Minority and Women-Owned Businesses
The changes made to the program, especially in regard to sole-proprietor businesses, will have a specific focus on minority and women-owned businesses through the specific allocation of $1 billion to low- and moderate-income areas. 70% of businesses in this category are owned by minorities or women.
As it currently stands, about half of the funds in the PPP have been allocated to 1.8 million different businesses totaling to about $134 billion. If the newest relief bill is passed, an additional $7 billion will be added to the current amount left. Stimulus talks have been heating up in Congress as well following the $1.9 trillion package that was proposed and announced by the Biden Administration.
Other expanded eligible companies include business owners with non-fraud-related felonies and specific non-citizen residents with visas or green cards.
When commenting on the announcement an administration official said, “While the Paycheck Protection Program has delivered urgent relief to many businesses across the country, the initial round of PPP last year left too many minority-owned and mom and pop businesses out while larger, well connected businesses got funds quickly.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.