The Biden administration has announced that the popular Paycheck Protection Program (PPP) will see some rule changes starting on Wednesday, February 24, reports CNN. These changes are an attempt to help make PPP loans fairer and easier to obtain for minority-owned and very small businesses.
- Small business exclusive window: the biggest change to the PPP program will be that small businesses with fewer than 20 employees will now have an exclusive two-week window where only they can apply for PPP loans. This exclusive window will ensure a speedier application process since big businesses will be barred from applying at the same time and flooding PPP loan officers with applications.
- More money: Previously, the amount of a PPP loan was calculated based on the number of employees a business had. Under the Biden administration changes, sole proprietors, independent contractors, and the self-employed can now qualify for more funding.
- More inclusive: the new rules also mean more people can apply for a PPP loan, including some felons, people who are delinquent on their federal student loan payments, and Green Card holders.
“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,” a Biden administration official told reporters on Sunday.
The Paycheck Protection Program is officially administered by the U.S. Small Business Administration. You can find out more about applying for a PPP loan here.