The program will also cover industries with serious crimes that are not related to fraud and defaulters on federal student loans.

HELP. More help will be provided to businesses / Pixabay

This Monday, the administration of President Joe Biden announced a series of changes that will be applied to the Paycheck Protection Program, an action that aims to help small businesses that could not access loans to be able to sustain themselves in the midst of the crisis caused by the COVID-19 pandemic.

According to information from the news network CNNIt will be from this Wednesday when companies with less than 20 employees will have an exclusive period of two weeks to request financing.

Regarding eligibility, the Biden administration will generate rule changes from the first week of March. Independent contractors, sole proprietorships, and the self-employed may qualify for more funding. Several of these were completely excluded in past incentives or received small amounts since some did not have employees.

The program, CNN continued, will also cover small industries with serious crimes that are not related to fraud, as well as defaulters on federal student loans.

A source noted Sunday that “while the Paycheck Protection Program has provided urgent relief to many businesses across the country, the initial round last year left out too many minority-owned and family-owned businesses, while the largest and most well-connected companies were quickly funded. ‘

History

It was in March of last year when Congress created the forgivable loan program with the mission of supporting small businesses affected by the economic impact of the coronavirus pandemic.

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Although the first stage ended in August 2020, lawmakers added funds in December, giving a second wind to the program for homeowners to apply for a second loan.

At that time, Congress agreed that the beneficiaries would be the owners of companies with less than 300 employees and that they would experience drops in their income of at least 25% in the first, second or third quarter of the year.

Since the benefit began, about $ 134 billion in loans have been loaned to just under two million small business owners.

Within the economic stimulus bill that the House hopes to pass before sending it to the Senate, at least $ 7 billion is estimated for said program, which would expand its limits to make more organizations eligible.



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