President Biden Announces Changes to PPP Loan
President Biden announced several critical changes to the coronavirus-relief program for small businesses across the country on Monday. In an attempt to improve access for small businesses in underserved communities, PPP loan applicants with fewer than 20 employees will be able to apply exclusively from 9 a.m. ET on Wednesday until 5 p.m. ET on March 9.
The changes “will make sure we look out for the mom-and-pop businesses even more than we already have,” Mr. Biden said.
The dedicated window will “give lenders and community partners more time to work with these Main Street businesses that anchor our neighborhoods and help families build wealth, while also ensuring larger PPP-eligible businesses will still have plenty of time over three weeks to apply for and receive support before the program expires,” an official said.
Last December, Congress included $284 billion for the latest round of PPP. As of Feb.21,
less than half those funds were allocated.
In an attempt to guard against fraud, processing delays of loan applications have occurred during the newest PPP round. The Small Business Administration (SBA) has placed flags on up to 240,000 PPP recipients for issues such as clerical errors to signs of misconduct.
The Consumer Bankers Association praised the changes announced on Monday but, urged the SBA to resolve delays.
“This two-week window will not fundamentally alter the roadblocks businesses are facing,” Richard Hunt, the group’s chief executive, said in a statement. “It is like giving everyone a train ticket on an unfinished railroad.”
The SBA has announced that it is working with lenders to resolve the flags.
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