One of the most significant PPP policy changes that Biden will do is give more to small minority-owned businesses. Most smaller establishments have been crushed by the pandemic and driven out.
Last Monday, changes in the policies regarding the Paycheck Protection Program (PPP) will be enacted. One of the changes that will follow the PPP is that any business with 20 or fewer workers is part of the priority. Another is that it is minority-owned.
Joe Biden announced these changes as part of the Paycheck Protection Program (PPP) to benefit these specifically own establishments. Since the pandemic's start, many businesses need such assistance to stay afloat, reported The Hill.
PPP timeline and relevant changes
According to the Biden Administration's official statement, they set up a 14-day schedule that starts February 24 and ends on March 9. In this period, all businesses with 20 or fewer employees could apply for the Paycheck Protection Program (PPP), said senior Biden officials. In these two weeks, those with more than 20 workers cannot apply yet. This period will only strictly allow smaller businesses to apply to help them survive.
Not only those who will get the PPP was modified, but also how much will be doled out by the program. A new loan calculates a formula for sole proprietors, independent contractors, and self-employed individuals to get the amount they need. Significant changes from the past formula are needed to customize the best amount required to keep them running based on Biden's changes.
However, there will be some restrictions that were in place to restrict misleading dole-outs that will be removed. These will be restrictions that are non-fraud felony convictions that will disqualify receiving funds. Another is whether delinquency in payment of federal student loans was incurred.
Some new guidelines about clearing those non-citizen small business owners who are green card holders or holding a US visa can apply for PPP loans. Nothing has been stated but will be announced.
Equity and the PPP program
Sources say that all these changes in the assistance program push equity to benefit everyone affected by the COVID-19 pandemic. It wrecked over 400,000 small establishments that took away millions of jobs because they could not cope.
One administration source said that small businesses are essential to cities and towns. They provide jobs for many Americans that are struggling in hard times. The administration, according to officials, is deploying measures to kick-start the economy.
One of the drawbacks of the Paycheck Protection Program (PPP) is relief did not reach the small guys first all over the United States. Minorities were marginalized as more prominent companies got the bigger cut through a connection which minorities lacked. Many small businesses suffered while big ones benefited more.
After reports of wealthy Trump donors getting millions in relief meant for small businesses, the administration is now refusing to disclose where the PPP money went. It's unacceptable.— Joe Biden (@JoeBiden) June 15, 2020
The American people deserve answers. https://t.co/F2n3PA7RZU
Treasury Department lending program is a product of bipartisan CARES act that Donald Trump signed. Unfortunately, the data shows that bigger businesses got to apply before the smaller ones, though no fault of the past administration. But now, the next version of the PPP program will have ways to equalize.
Last December, the House passed another PPP funding, with half of the funds deployed for distribution. Biden is looking out for the small guys to get PPP loans first.