“These businesses have been neglected for a year,” Nidia Velazquez (DN.Y), chairman of the Small Business Association, told Policico. I promise to work with Biden Management to distribute these benefits not only to those who offer new benefits but also to as many investors as possible.
According to the House Small Business Committee, more than 2.6 million private investors, independent contractors and private entrepreneurs have already been approved for PPP loans.
The backlash comes amid recent controversy over the management of the SBA program, which has distributed more than $ 662 billion in unforgivable loans to businesses since its inception last April. The SBA, a small federal agency that manages the PPP with the Treasury Department, has been criticized for its unprecedented economic decision-making and changing laws.
New Jersey-based freelance photographer Jonathan Kolbe has received two PPP loans and may not be able to raise them under the new rules. I’m sorry they didn’t see it in the SBA to help people who had played the rules, signed the applications and approved in the past.
Treatment of sole proprietors, independent contractors and private entrepreneurs — including cleaning and home maintenance services for small employers: PPP has been working since its inception. While other businesses are able to calculate their eligibility for PPP loans based on payroll costs, small companies are forced to apply for loans based on their net profit, such as rent and utilities.
In December and January, members of the National Private Associations’ Public Opinion: 68 percent of the federal government received adequate funding from the small business community through the PPP. A separate study released last month by a small advocacy group and a small business management team found that more than one in three businesses had asked for the full amount, including a small number of black entrepreneurs.
Last week, the Binden administration announced that it would improve the rules for private owners and entrepreneurs after realizing that those businesses were “structurally isolated” and short-changed, even though they were mostly businesses. Under the new rules passed by SBA on Wednesday, businesses can calculate their loan amount based on a larger scale – gross income.
Although it may seem like a clear policy advantage for the first time, the SBA will limit the impact of not allowing businesses to improve their existing PPP loans if the grant is already approved. A recent example is the rest. S.B.A. Friday passed a law that would allow farmers and farmers to qualify for more financial support in December, allowing them to increase PPP loans.
The SBA has previously been a PPP. SBA spokesman Matthew Coleman said in December Congress had authorized the revision of the rules for farmers and livestock farmers.
Although the small businesses involved did not have an army, their lawyers began to fight.
“Those hard workers should not be punished,” said Keith Hall, president and CEO of the National Self-Employment Association.
Some people on Capitol Hill believe that the SBA has the power to adjust the loan. Legislators plan to investigate the reasons behind the decision and the need for legislation to address it.
This month, P.P.P. “It’s a matter of fairness,” said Ben Cardin (DM), chairman of the Senate Small Business Association, which plans to hold a supervisory hearing.
“I am very interested in pursuing ways to offer the same benefits to those who have already applied,” he said. I need to understand a little more about the administrative challenges of the SBA and why you are not recommending this administratively.
If SBC has a policy and Congress to intervene, borrowers will face a strict timeline. P.P.P. The loan is due to expire on March 31. So far, neither the White House nor key Democrats have been pushing for it.
Dennis Aman, chief executive officer of the People’s Bank of Mississippi, said:
“I am very upset with the SBA for sticking to this policy,” Aman said. “I don’t understand why SBA does not allow lenders to understand these small businesses. It makes no sense.”