President Joe Biden announced a two-week exclusive application period for Paycheck Protection Program (PPP) loans for small companies with fewer than 20 employees. He hopes that the changes will help ensure that mom-and-pop businesses get the much-needed federal relief.
Smaller businesses often struggle in preparing the necessary paperwork and secure PPP loans. The two-week exclusive application period will allow lenders to focus on serving the smallest firms. Biden said it is imperative to support small businesses because they are the glue and the heart and soul of communities, but they are getting crushed. Around 400,000 small firms have closed since the beginning of the pandemic, and the pandemic hit minority communities the hardest.
Biden established a $1 billion set aside for self-employed individuals, independent contractors and sole proprietors. He also opened the PPP to small businesses who are delinquent on federal student loans, convicted of a non-fraud felony and non-citizens but legal U.S. residents.