The federal government is opening a 14-day window starting Wednesday in which only businesses with fewer than 20 employees will be able to apply for the Paycheck Protection Program.
President Joe R. Biden is taking steps to ensure that small businesses aren’t left insoluble by the COVID-19 coronavirus pandemic.
According to a fact sheet released by The White House, the administration is opening a 14-day window during which only businesses with less than 20 employees can apply for relief through the Paycheck Protection Program (PPP). These make up 98 percent of all small businesses, and they often struggle with collecting the necessary paperwork and securing relief from a lender.
The latest round of PPP funding has shown a large increase in its provisions for small businesses including a 60 percent increase in the funding going to businesses with fewer than 10 employees, a 30 percent increase in the amount of funding going to small business in rural areas, and a 40 percent increase in the share of funding disbursed through the Community Development Financial Institutions and Minority Depository Institutions, the release says.
The administration will also help sole proprietors, independent contractors, and the self-employed receive more financial support by revising the loan calculation formula for these applicants so they can receive more relief and setting aside $1 billion for businesses in this category without employees in low-and moderate-income areas, according to the release.
The administration will also eliminate an exclusionary restriction that prevented small business owners who are delinquent on their federal student loans from obtaining PPP funds, the release says.
More information on how PPP funds are helping small businesses can be found here.