Biden Administration Announces PPP Reforms
Feb. 22, 2021—The Biden administration announced changes on Monday to the Paycheck Protection Program (PPP) to try and reach smaller, minority-owned businesses and sole proprietors who were unable to receive aid in previous rounds, CNBC reported.
For two weeks, beginning Wednesday, the Small Business Administration (SBA) will only accept applications for forgivable PPP loans from firms with fewer than 20 employees.
The program will also set aside $1 billion for businesses without employees in low- and moderate-income areas, which are 70 percent owned by women and people of color.
The SBA will also provide new guidance making it clear that legal U.S. residents who are not citizens, such as green card holders, cannot be excluded from the program, the report said. The Biden administration will also eliminate exclusions that prohibit a business owner who is delinquent on student loans from participating in the program.