Washington (Associated Press)-President Joe Biden announced a series of adjustments on Monday aimed at providing federal pandemic assistance to the smallest businesses and businesses owned by women and people of color in the United States.
Biden said that in the early stages of the pandemic, large companies sought federal government funding, and many of these startups “become at a loss.” He said the changes that went into effect on Wednesday will provide these smaller companies with long-term due assistance, and he said these small companies have been “crushed”
Biden said: “Small businesses in the United States are being hit hard, hit hard, and now they need help.”
Under the pay protection plan in the pandemic era, the government is establishing a two-week window. Starting Wednesday, only companies with less than 20 employees (mostly small businesses) can apply for forgivable loans.
Biden’s team also spent $1 billion to directly target individual owners, such as house contractors and beauticians, most of whom are owned by women and people of color.
Other efforts will lift the previous year’s ban on loans to companies with at least 20% ownership of people who were arrested or convicted for fraud and fraud, and prohibit those who obtained loans through federal student loans from seeking relief through the program. The competent authority also clarified that non-citizen legal residents can apply for the program.
First launched during the earliest period of the coronavirus pandemic And renewed in December, the plan aims to help Americans continue to be employed during the economic downturn. It allows small and medium-sized enterprises that have suffered a loss of income to obtain federal loans, and if 60% of the loan is used for the balance of payroll and other eligible expenses, it can be forgiven.
Biden’s work aims to correct differences in program management By the Trump administration.
Data from the Salary Protection Program released by the Associated Press on December 1 showed that many minority owners desperate for bailout loans did not receive bailout loans until the last few weeks of the PPP, and more white business owners were able to obtain them in the early PPP. loan. The program.
The plan began on April 3 and ended on August 8. It issued 5.2 million loans worth US$525 billion. When the government’s measures to control the coronavirus forced many businesses to close or their operational capacity declined, the plan helped many The enterprise sustains its livelihood.
The latest PPP began on January 11 and lasted until the end of March. It has paid out USD 133.5 billion in loans, which is about half of the USD 284 billion allocated by Congress, with an average loan of less than USD 74,000.
Further updates to this plan are not included in Biden’s $1.9 trillion “American Rescue Plan”“He hopes that Congress will pass it in the next few weeks.