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Tuesday, 23 February 2021 17:03

SBA Prioritizes Smallest of Small Businesses in PPP

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Building on a month of strong results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses. 

The latest round of Paycheck Protection Program funding opened in late January and already the Biden Administration has succeeded in making major improvements to the program’s implementation:

 

  • For businesses with fewer than ten employees, the share of funding is up nearly 60%
  • For businesses in rural communities, the share of funding is up nearly 30%
  • The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%
     

“The SBA is a front line agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural and other underserved communities in meaningful ways," said SBA Senior Advisor Michael Roth. "While reported data illustrates we have made real strides in ensuring these funds are reaching underserved communities, we believe we can still do better.

 

“The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families build wealth.”  

 

These simple progressive steps by the Biden-Harris Administration further demonstrate the commitment to racial and gender equity, reaching low and moderate-income, rural, urban and other underserved areas. The SBA will:

 

  • Establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees
  • Allow sole proprietors, independent contractors and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
  • Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
  • Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP
  • Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP
     

The 14-day exclusivity period will start at 9 a.m. ET Feb. 24, while the other four changes will be implemented...


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