Constitution State News

Small businesses around the country will get much-needed help from a federal program that President Joe Biden has helped change.

Biden announced the changes to the federal program on Feb. 22 and one of the changes is that priority will be given to businesses and nonprofits with fewer than 20 employees asking for loans for a 14-day period. The Paycheck Protection Program will prioritize small businesses and the loan requests start on Feb. 24.

After that period, companies with more than 20 employees will be able to apply for a loan. The program will end on March 31.

Another change to the program will favor small-business owners with previous felonies and delayed payments on student loans. Biden’s administration will remove restrictions on business owners who either were convicted with felonies previously or who were unable to pay off their student loans and permit them to ask for a loan to keep their businesses afloat.

In addition to that, sole proprietors, independent contractors and self-employed individuals can ask for a higher amount as the PPP will make revisions on their funding formula. Also, non-citizens who are already legal residents will be permitted to ask for loans by using their Individual Taxpayer Identification Number.

These changes will help people who are severely hampered by the pandemic to keep their businesses, which are often small mom-and-pop stores, afloat. Biden said that these businesses are the foundation of every small community in the U.S. and it is the federal government’s responsibility to help them stay in business.