Joe Biden is changing the rules on the Paycheck Protection Program (PPP) loans.
He wants to include people who were kept from applying under Trump.
Trump banned felons, people with a history of delinquent loans and foreigners living in the US legally, but now they are free to apply for loans.
What could possibly go wrong with that? The administration acknowledged that small businesses are the backbone of the economy, which is true.
They pointed that it has been roughest on Black and Hispanic businesses. That is probably true considering how many of them had their businesses looted and burned to the ground. But I am willing to bet that the felons will find some way to milk the system out of a lot of money.
I am torn on the foreigners but I am learning to agree to that provision providing they don’t owe any back taxes.
After all, they pay corporate and income taxes too.
The administration put out the following statement:
“Now, millions of main street small businesses–especially Black-and Brown-owned small businesses–are struggling to make ends meet in the wake of the COVID-19 pandemic and resulting economic crisis. The Biden-Harris administration has made delivering equitable relief to hard-hit small businesses a top priority.”
Consistent with a bipartisan bill, eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program. Currently, a business is ineligible for PPP if it is at least 20 percent owned by an individual who has either: (1) an arrest or conviction for a felony related to financial assistance fraud within the previous five years; or (2) any other felony within the previous year.
To expand access to PPP, the Biden-Harris administration will adopt bipartisan reforms included in the PPP Second Chance Act, co-sponsored by Senators Ben Cardin (D-MD), Rob Portman (R-OH), Cory Booker (D-NJ), and James Lankford (R-OK), which would eliminate the second restriction (the one-year look-back) unless the applicant or owner is incarcerated at the time of the application.