US: Biden reforms PPP loans to boost small businesses

WASHINGTON

US President Joe Biden announced Monday he is enacting new rules to the Paycheck Protection Program (PPP) intended to boost support to America's smallest businesses.

The reforms include a 14-day window in which only businesses that have fewer than 20 employees can apply for relief under the programs, the White House said in a statement. The period, which is intended to bolster small business access to the program, will begin on Wednesday.

The White House also framed the revisions as an effort to aid minority-owned businesses, particularly independent contractors, sole proprietors, and the self-employed, 70% of whom are women and people of color.

The Biden administration is moving to rewrite the loan formula to allow for more access to PPP loans and will set up a $1 billion allotment for them.

The program was implemented early in the US outbreak and has been critical in keeping American businesses afloat amid the economic calamity caused by the coronavirus pandemic.

The US is on the verge of hitting half a million deaths since the virus first reached the country in early 2020.