Small Business Majority Applauds Administration’s Improvements to Paycheck Protection Program
(Washington, D.C.) – Today, Small Business Majority Founder and CEO John Arensmeyer commented on the White House’s announcement that the administration is making several changes to the Paycheck Protection Program (PPP) to better serve the smallest businesses and those owned by people of color.
“Since PPP was first launched last year, we have called on Congress and the U.S. Small Business Administration to ensure the program is reaching small businesses with the greatest need, particularly as too many small businesses owned by people of color and the self-employed were left behind during the first rounds of funding.
We’re glad the Biden-Harris Administration is taking steps to address these inequities by establishing a special application window for very small businesses and ensuring that sole proprietors and the self-employed are better served by the program. Similarly, the administration is addressing challenges that certain non-citizen small business owners, the justice-impacted and those with student debt have faced in accessing PPP, which will ensure some of our most vulnerable small businesses are eligible for this loan relief.
Our latest research underscores why these changes are still much-needed nearly a year into the pandemic: Few business owners of color who applied for PPP last year received the full loan amount they requested, and just 7% of the self-employed even applied. What’s more, a majority of entrepreneurs of color report they will need loans or grants this year to keep their businesses open.
While small businesses will need much more than PPP to ensure their long-term recovery, including direct grant assistance and access to flexible capital, we’re glad the administration is taking this important step to make the program more equitable. With the deadline to apply for PPP fast approaching, the U.S. Small Business Administration must implement these changes swiftly and ensure they’re effectively communicated to the small business community.”
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 80,000 small businesses and 1,000 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.