The Biden administration is establishing a two-week window starting on Wednesday, Feb. 24, in which only businesses with fewer than 20 employees — the overwhelming majority of small businesses — can apply for Paycheck Protection Program (PPP) forgivable loans.
Biden’s team is also carving out $1 billion to direct toward sole proprietors, independent contractors and self-employed individuals, such as home repair contractors and small independent retailers. The majority of these businesses — those without employees — are 70% owned by women and people of color.
In making the announcement, the White House said that “these businesses often struggle more than larger businesses to collect the necessary paperwork and secure relief from a lender. The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses. The Biden-Harris administration will also make a sustained effort to work with lenders and small business owners to ensure small businesses take maximum advantage of this two-week window.”