The Biden administration announced Monday several reforms to the Paycheck Protection Program, most of which are intended to help small businesses that have struggled as a result of the COVID-19 pandemic.
The President explained that these reforms are meant to make sure the program “looks out for mom-and-pop businesses even more than it already has.”
The White House described reforms intended to build upon and increase the funding that small businesses have been receiving “by further targeting the PPP to the smallest businesses and those that have been left behind in previous relief efforts.”
Most notably, the administration plans to give extra assistance to small businesses by instituting a “14-day period, starting Wednesday, during which only businesses with fewer than 20 employees can apply for relief through the Program,” as per the White House.
The fact sheet from the White House also details plans to help “sole proprietors, independent contractors, and self-employed individuals receive more financial support” by revising the loan calculation formula. Previously, these individuals qualified for little to no loans.
The reforms do away with many of the restrictions on who can obtain financial assistance through PPP. The program will now offer assistance to small business owners who are non-citizens, are delinquent on their federal student loans, or who have prior non-fraud felony convictions. Previously, these were all disqualifiers.
The White House also detailed further additional “steps to ensure equitable distribution of relief that values each and every tax payer dollar.”
The statement said, “While these efforts are no substitute for passage of the American Rescue Plan, they will extend much-needed resources to help small businesses survive, reopen, and rebuild.”