PPP Loans for Mom and Pop Shops

Biden Harris administration has proposed certain restrictions, or more specifically, subjected PPP Loans to certain changes. The news is recent to the last week of February 2021. The Biden administration and the SBA are working to improve the conditions and the state of small businesses in the US.

This entails proper support and provisions of funds to underserved businesses. The administration and the SBA have come to the realization of how these small businesses lack proper funding for forgivable loans. They are the main “street” businesses incorporating employment opportunities and contributing to their respective neighborhoods.

Loan Application Period

A two-week application period is exclusive to small businesses with only 20 or fewer employees. Because most new businesses have less than 20 employees, this change is highly valuable if your small business is the sole source of income for your family and the only means of putting food on the table.

Financial Support Extension

The announcement proposes changes for small businesses in low-and-moderate-income areas. Independent contractors, sole proprietors, and self-employed professionals will receive separate funding under the PPP loan coverage of $1 billion. The change also entails that business owners’ racial backgrounds will not be a cause for disqualification.

This change also pertains that the calculation of the loan amount will be through gross income. This will allow non-profitable businesses to benefit from a PPP Loan.

Non-Fraud Felons’ PPP Eligibility

Small business owners with felony records in recent or past years will be eligible to receive funding through the PPP Loan under certain conditions. This is only if the charges against them are not fraud-related. Implementation has yet to occur. However, currently, the criterion of disqualification holds a certain aspect of the PPP Loan eligibility.

If a small business owner with a fraud-related felon charge owns more than twenty percent of the business, then they are disqualified in the PPP Loan applications. Secondly, if there is any other felon charge in the last year, disqualification is again prominent.

Federal Loan Delinquency

PPP Loan reform will dismiss the restriction on small business owners who are delinquent on federal loans such as student loans. The reforms make them eligible for PPP loans. Presently, the restriction imposes that a small business with a 20% owner who defaults on student loans is not eligible for PPP.


Furthermore, the Biden administration is working on expanding the eligibility of PPP loans to non-citizen but lawful residents of the US. This matter can be of importance to you if you own a small business. The PPP Loan reforms that are to come will allow easy access to government funding for your business.

In addition, second borrowings are also possible for businesses. Nevertheless, the cap of the second loan from the government will be at $2 million, in contrast to the cap of $10 million for the first loan borrowing.

The goal of the SBA is to achieve the distribution of a $15 billion loan regimen for small businesses. These reforms aim to improve small businesses’ eligibility criteria for PPP loans due to the SBA’s past errors and failures.


  1. https://beenegarter.com/5-ppp-changes-small-businesses/
  2. https://www.forbes.com/sites/rohitarora/2021/02/24/biden-administration-proposes-changes-to-ppp-aimed-at-increasing-small-business-access-to-capital/
  3. https://www.forbes.com/sites/allbusiness/2021/02/23/biden-makes-changes-to-ppp-loans-what-you-need-to-know/
  4. https://www.washingtonpost.com/business/2021/02/22/biden-ppp-rules/
  5. https://www.foxbusiness.com/economy/how-to-get-a-ppp-loan-after-biden-administration-changes-the-rules-for-small-businesses
  6. https://edition.cnn.com/2021/02/22/politics/ppp-loans-biden-administration-small-businesses/index.html
  7. https://www.cnbc.com/2021/02/22/biden-administration-to-revise-small-business-loans-to-reach-smaller-minority-firms.html


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