The White House announced ten key reforms to the Paycheck Protection Program (PPP) Monday morning with the aim of funneling coronavirus relief to the small businesses that need it most.
Senior White House officials told reporters that these changes, applicable to the funding reload that started in January, will provide further relief to “those that have been left behind in previous relief efforts” by seeking to advance equity in Biden’s economic recovery. (RELATED: Here’s How Government Can Help Small Businesses Decimated By Pandemic Restrictions)
“While these efforts are no substitute for passage of the American Rescue Plan, they will extend much-needed resources to help small businesses survive, reopen, and rebuild,” officials stated.
Five of the reforms are specifically designed to address businesses that were not able to take part in the first round of PPP loans, including sole proprietorships, which make up roughly 70 percent of all American businesses.
- Institute a 14-day period, starting Wednesday, during which only businesses with fewer than 20 employees can apply for relief through the Program
- Help sole proprietors, independent contractors, and self-employed individuals receive more financial support
- Consistent with a bipartisan bill, eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program
- Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief
The second set of reforms are designed “to ensure equitable distribution of relief that values each and every taxpayer dollar,” according to the officials.
- Addressing waste, fraud, and abuse across all federal programs
- Promoting transparency and accountability by improving the PPP loan application
- Improving the Emergency Relief Digital Front Door
- Continuing to conduct extensive stakeholder outreach to learn more about challenges and opportunities in the implementation of current emergency relief programs
- Enhancing the current lender engagement model
President Joe Biden will deliver additional remarks on the PPP reforms at noon Monday, and he is expected to address the United States surpassing 500,000 coronavirus deaths later Monday evening.
You can stream both speeches through the White House’s website.