Fact Sheet: Changes to Paycheck Protection Program by Biden-Harris Administration Increase Equitable Access to Relief
Two weeks ago, the Biden-Harris Administration made several reforms to the Paycheck Protection Program (PPP) to further ensure small businesses get the help they need, especially Mom-and-Pop businesses in underserved communities.
Putting equity at the center of its policies and programs, the Biden-Harris Administration launched a comprehensive plan to engage small businesses and nonprofits, focusing on building trust in underserved communities.
The cornerstone of reforms included a 14-day exclusivity period (February 24-March 9) where only businesses and nonprofits with fewer than 20 employees could apply for relief through the PPP. This period was to give lenders time to focus on reaching out to the smallest of small businesses left behind in previous rounds.
Early indications show program reforms and efforts to engage with communities authentically are working in meaningful ways. As of March 7, a comparison of the daily average rate of loans made during the exclusivity period and daily average rate ten days before the exclusivity period show loans to:
- Minority-owned businesses up by 20%, or an additional 1,000businesses accessing relief each day
- Women-owned businesses up by 14%, or an additional 600businesses accessing relief each day
- Small businesses in rural areas up by 12%, an additional 1,000businesses accessing relief each day
In total, more than 400,000 small businesses and nonprofits with fewer than 20 employees were serviced during the exclusivity period as of March 7. Compared to the ten days preceding the exclusivity period, the reforms show that nearly 200,000 are first-time PPP borrowers – a 25% increase in daily approvals.