This Fed America will give America’s smallest businesses two weeks to access coronovirus relief loans without large companies working.
The White House said that firms with only 20 employees would be able to apply for excusable loans through a paycheck protection program for 14 days.
The move is among several moves the Biden administration announced Monday to help cash-snatching small businesses – particularly those owned by people of color – get access to a $ 284 billion aid package as COVID-19 The crisis continues.
Although the Fed has already narrowed the criteria as to who can access the latest round of so-called PPP funds, White House officials say they want to streamline the process for small businesses that make up nearly half of the nation’s workforce. Employs
The White House said, “Businesses with fewer than 20 employees often struggle more than large businesses to get the necessary paperwork and lender relief.” Fact sheet
Outline of the latest changes. “The 14-day exclusive application period will allow lenders to focus on serving these most small businesses.”
Officials said the program would also revise the formula used to calculate PPP loans for sole proprietors, independent contractors and self-employed people, some of which were approved for $ 1 under previous rounds of the program , Officials said.
The Biden administration will pay $ 1 billion for those types of businesses, including beauticians, home repair contractors and independent retailers, according to the fact sheet.
And officials said they would work to expand access to the program by ending restrictions prohibiting green card holders from going, people who are wrong about federal student loans, or those who were recently arrested or Those convicted of hooliganism have not been related to financial fraud unless the applicant is currently undeclared.
As of last week, the Small Business Administration said it had pulled out approximately 6.8 million PPP debt of $ 648 billion since the program’s inception last spring.
Officials said 1.6 million loans worth about $ 126 billion have been approved since January, of which more than 70 percent were $ 50,000 or less.