On Monday, the Biden Administration announced a series of significant changes to the Paycheck Protection Program (PPP) that will prioritize applications from businesses with twenty (20) employees or fewer, as many of these businesses were shut out of the first two rounds of the PPP process. The temporary rule change, which begins on Wednesday, 2/24 and lasts for two weeks, makes the following changes to support small business applicants:
- Creates a two-week window, starting Wednesday 2/24, during which only businesses with fewer than 20 employees can apply to prioritize support to businesses previously left behind
- Expands eligibility for immigrant entrepreneurs
- Expands equitable funding for sole proprietors, independent contractors, and self-employed Americans, of which 70% are women or people of color
- Removes exclusionary requirement for business owners who were formerly incarcerated for non-fraud convictions
- Removes exclusionary requirement for the millions of Americans who are behind on student loan payments
These changes will have a direct positive impact on small business owners across the nation. Next Street is excited our very own Managing Partner, Michael Roth , who has taken a temporary role as Senior Advisor in the SBA to manage through the transition, has been able to make immediate impacts to drive equitable access of PPP to communities of color. We are excited to have him back in a few weeks.