Biden Tweaks PPP Targets Smallest Businesses

1. 84

   Sharlee01posted 4 years ago

   
   
   President Joe Biden targets more federal pandemic assistance to the nation’s smallest businesses and ventures owned by women and people of color. This is positive news, in a time we all could use some.
   
   Biden seeks to make positive improvements on the Trump administration pandemic-era Paycheck Protection Program, that will aid small businesses to survive the hardships that the pandemic has placed on them.  The Biden administration is establishing a two-week window, starting Wednesday, Feb, 24th, in which only businesses that employers have fewer than 20 employees — the overwhelming majority of most small businesses that have been affected by the Pandemic — can apply for the forgivable loans.
   
   Biden stated a lot of these mom-and-pop businesses “got muscled out of the way” by larger businesses seeking federal money in the early days of the pandemic. He said changes taking effect Wednesday will provide long overdue aid to these smaller enterprises that he says are being “crushed” by the pandemic-driven economic downturn.
   
   "America’s small businesses are hurting, hurting badly and they need help now,”  President Biden   
   
   Biden's team is also carving out $1 billion to direct toward sole proprietors, such as home contractors and beauticians, the majority of which are owned by women and people of color.
   
   Other efforts will remove a prohibition on lending to a company with at least 20% ownership by a person arrested or convicted for a nonfraud felony in the prior year, as well as allowing those behind on their federal student loans to seek relief through the program. The administration is also clarifying that noncitizen legal residents can apply to the program.  Lawful permanent residents (LPRs), also known as “green card” holders, are non-citizens who are lawfully authorized to live permanently within the United States.
   
   Data from the Paycheck Protection Program released on Dec. 1  show that many minority owners desperate for a relief loan didn’t receive one until the PPP’s last few weeks,  while many more white business owners were able to get loans earlier in the program.
   
   The PPP, which began on April 3 and ended on Aug. 8 has handed out 5.2 million loans worth $525 billion and worked to help many businesses stay above water when the coronavirus forced many to shut down or operate at a diminished capacity.
   
   The latest PPP, which began Jan. 11 and runs through the end of March, has already paid out $133.5 billion in loans — only half of the $284 billion allocated by Congress — with an average loan under $74,000.
   
   This would well appear to be a positive step to help small business owners get back on their feet.  Thoughts...

   replyreport
   1. 74

      wildernessposted 4 years agoin reply to this

      My daughter in law, owning a small business printing T shirts and such, had applied for a loan before but never got one.  One big hurdle is that she has no employees.
      
      But she did this year. Not sure if it came from Biden, though - she applied and got it 2-3 weeks ago.
      
      I would be against targeting minorities, either women or "people of color", though.  Target those small businesses that fell through the cracks before, particularly those like my daughter in law that are working to become large enough to hire employees, but leave skin color and sex out of the equation.  That should never be a part of getting either aid or a loan, from the government or otherwise.

      replyreport
      1. 84

         Sharlee01posted 4 years agoin reply to this

         I tend to agree with you about leaving skin color and sex out of it.  I think loans should be based on previous financial business records that are in line with the type of business that is applying.  If a business owner can prove they had a business that was solid, and profitable or records showing the business was becoming profitable should be one variable to be considered. I think this needs to be considered. I don't think one needs employees to become a profitable business.  I do know my son had to prove how many employees he had, and that he needed to agree he would keep paying these employees for I think it was one or two years. He owns a software company and has 800 employees across theUS and the world, he did borrow millions and the loan will be forgiven due to his agreement to pay his employees. He does not have to pay the loan unless he breaks the agreement. It would seem in the beginning the loans were being given to larger businesses. To keep them afloat.  I am really pleased to see loans will reach small businesses. We need small businesses and always have. They provide jobs and have a part in our economy.  It's clear the first money/loans were given out unfairly. Many small businesses as you mention do not have many employees.    Glad to hear your daughter-in-law received a loan.

         replyreport
         1. 74

            wildernessposted 4 years agoin reply to this

            It was a pretty big thing to her.  The pandemic didn't close her doors, but it hurt really bad.  So much of her business comes from things like childrens sports or other activities that DID shut down that it very nearly finished her, too.  She expanded her customer base, started some new products and has managed to hang on.  The loan will allow her to pay the bills as business recovers, and it is beginning to.

            replyreport
            1. 84

               Sharlee01posted 4 years agoin reply to this

               I like to hear good news...  I hope she will soon be back to the feeling she is out of the woods. Sounds like a hard worker, and one that did not give up, but kept pushing ahead.

               replyreport