Partially in the face of criticism that the prior distribution of coronavirus relief loans went mostly to large companies; the federal government is targeting loans for two weeks at the smallest businesses. This includes people who work for themselves.
The Paycheck Protection Program will only be open to companies with fewer than 20 employees for 14 days starting Wednesday. Emphasis will be place on people of color. The feds say they are streamlining the application process and revising the formula for awards in favor of sole proprietors, independent contractors, and self-employed people.
One billion dollars has been allocated for these targeted businesses which includes beauticians, home repair contractors and independent retailers. .
President Biden said ““The Small Business Administration will also remove barriers that have stopped many businesses from being able to apply for these loans. For example, we’re making it so that a student loan default or a non-fraud-related criminal record does not prohibit someone from applying for the program.”