CNBC's Kate Rogers reports on how the Biden administration plans to focus the Paycheck Protection Program efforts on the smallest businesses. For access to live and exclusive video from CNBC subscribe to CNBC PRO: [ Ссылка ]
The smallest businesses that have had the most trouble accessing forgivable loans from the Paycheck Protection Program will soon get extra help.
The Biden administration on Monday announced changes for the pandemic aid program focused on helping small and minority owned firms as well as sole proprietors.
For two weeks, starting Wednesday, the Small Business Administration will only accept applications for PPP loans from firms with fewer than 20 employees.
The administration is also making several changes to the program, including increasing loan amounts for sole proprietors and individual contractors, eliminating restrictions around delinquent student loan debt and non-fraud felony convictions as well as allowing some non-citizen business owners to apply.
The changes will help even the playing field for firms that make up most of the small business community – 98% of small businesses employ fewer than 20 people but have received only 45% of PPP funding thus far, according to the SBA. They also aim to address racial disparities that have been seen in loans as earlier iterations of the program left out many minority-owned businesses.
“It’s a great idea to make sure that we’re prioritizing small and minority owned business owners because we saw that they were left out of the process,” said Marvin Owens, the chief engagement officer of Impact Shares and former senior director of economic development at the NAACP. “What you saw in the beginning of PPP was really a revealing of the disparities around access to capital.”
Supporting these firms is extremely important to the U.S. economic recovery, as small businesses employ nearly half of all working Americans, according to the SBA.
“This is one of our country’s main economic drivers,” said Awesta Sarkash, government affairs manager at Small Business Majority, a left-leaning advocacy organization. “Our main employers are hurting, and so you see a ripple effect.”
Here’s what small business owners need to know before the application window opens on Wednesday.
» Subscribe to CNBC TV: [ Ссылка ]
» Subscribe to CNBC: [ Ссылка ]
» Subscribe to CNBC Classic: [ Ссылка ]
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: [ Ссылка ]
Connect with CNBC News Online
Get the latest news: [ Ссылка ]
Follow CNBC on LinkedIn: [ Ссылка ]
Follow CNBC News on Facebook: [ Ссылка ]
Follow CNBC News on Twitter: [ Ссылка ]
Follow CNBC News on Instagram: [ Ссылка ]
[ Ссылка ]
#CNBC
#CNBCTV
Ещё видео!