Paycheck Protection Plan Details Released by White House

Paycheck Protection Plan Details Released by White House

( – Joe Biden has attempted to develop a workable plan to provide economic relief to American companies since he assumed office on January 20. Now he’s targeting one of the pillars of the original CARES Act — the Paycheck Protection Program (PPP).

On Monday morning, February 22, the Biden administration announced a series of reforms to the Paycheck Protection Program. Administered by the Small Business Administration (SBA), the PPP provides government-backed loans to help businesses retain workers in the wake of the COVID-19 pandemic.

White House employees told reporters the reforms were necessary to provide additional relief to companies unable to benefit from earlier relief efforts. Some of the proposed reforms include:

  1. Restricting the applications for loans to companies with less than 20 employees for two weeks starting on Wednesday, February 24.
  2. Adjusting eligibility requirements to make it easier for individuals with felony convictions and non-citizens to receive loans.
  3. Eliminating restrictions barring business owners behind on student loan payments from receiving loans.

These changes favor some businesses left behind in earlier relief efforts. However, they don’t replace the need for a new relief package for working-class Americans.

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