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February 22, 2021 at 09:16 AM
What You Need to Know
- For two weeks, loans will be limited to businesses with 20 or fewer employees.
- These firms often struggle to complete the application process, Biden says.
- He announced other changes to expand PPP loan eligibility.
The Biden-Harris administration announced that starting Wednesday, only businesses with fewer than 20 employees can apply for a Paycheck Protection Program loan.
Biden said that the PPP application restrictions, which will last for 14 days, are intended to aid the smallest businesses and “those that have been left behind in previous relief efforts.”
Ninety-eight percent of small businesses have fewer than 20 employees.
“While these efforts are no substitute for passage of the American Rescue Plan,” Biden’s stimulus package, “they will extend much-needed resources to help small businesses survive, reopen, and rebuild,” Biden said in a statement.
Businesses with fewer than 20 employees “often struggle more than larger businesses to collect the necessary paperwork and secure relief from a lender,” Biden said.
The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses.
