Biden changes PPP qualifications; firms with fewer than 20 employees to get exclusive access for 2 weeks
White House Feb 22nd, 2021
President Joe Biden is announcing changes to the main U.S. coronavirus aid program for small businesses to try to reach smaller and minority-owned businesses.
The Biden administration said that for two weeks starting on Wednesday, Feb. 24, the Small Business Administration will only accept applications for forgivable Paycheck Protection Program (PPP) loans from firms with fewer than 20 employees to ensure that they are not crowded out by larger firms.
The first PPP launched in April 2020 was part of a $3 trillion relief bill and offered $349 billion in business loans, which ran out in two weeks. Congress approved another $320 billion PPP round in May, but the program terminated in August with about $130 billion in unused funds.
The program was relaunched on Jan. 19 with $284 billion in new funds from a coronavirus aid bill passed at the end of December. About $150 billion of PPP funding is still available.
See the Feb. 22 White House statement: