|The administration improves Paycheck Protection Program to support equitable access to capital.
Lt. Governor Garlin Gilchrist II today issued the following statement after President Joe Biden announced changes to the Paycheck Protection Program (PPP) to provide an exclusive two-week window for small businesses with fewer than 20 employees to apply for forgivable loans guaranteed by the federal government, helping minority-owned businesses who were previously unable to secure a loan under the previous administration’s rollout.
“I applaud the Biden-Harris Administration for stepping up to help small businesses in the heart of communities across the state of Michigan. While more than 100,000 PPP loans have helped provide relief to Michigan businesses already, we know that many of our state’s smallest businesses did not have access to this program, particularly businesses owned and run by Black entrepreneurs and other entrepreneurs of color. Oftentimes, these businesses have anchored neighborhoods for generations, and there remains a significant need for additional resources to support these local entrepreneurs and innovators. President Biden continues to follow through on his promise to prioritize equity through his administration’s work to better serve and uplift communities of color.
“In addition to the president’s announcement, Governor Whitmer and I have put forward billions of dollars under the MI COVID Recovery Plan, which is currently being held up by Republicans in the legislature. Our plan specifically directs $225 million to invest in the survival and growth of small businesses that were left out of previous relief programs. The broader recovery plan also expands our vaccination program, gets our children back in the classroom safely, and jumpstarts our economy as we end the pandemic once and for all. It is time for the Republicans in the legislature to get these federal dollars into the hands of Michiganders right away. Our people cannot afford to wait any longer for this relief.”
In an effort to increase equitable access to capital, President Joe Biden made additional changes to the Paycheck Protection Program to set aside $1 billion in financial relief to self-employed individuals, sole proprietorships, and independent contractors who weren’t previously eligible for greater relief. The president also eliminated restrictions that prevented small business owners with non-fraud felonies from receiving relief.
PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll and may be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Businesses can apply for a PPP loan by downloading the First Draw PPP loan application or Second Draw PPP loan application and working with a participating PPP lender through the SBA Lender Match tool.