Biden made changes to Trump’s Paycheck Protection Program. The result is more money went to poorer communities, minorities and businesses in which the owner is the sole employee.
“The administration came into office with a big focus on racial and social equity, and small business is a significant part of it,” said Michael Negron, the senior White House adviser for small businesses. ”For our equity goals, entrepreneurship is important because it helps create generational wealth.”— was troublingly expensive per job saved and the payments mostly benefitted business owners who were best prepared to weather the pandemic.
“The U.S. has instead ‘starved the beast,’” Autor said. “The result is not less government. It’s simply less effective government.” When the Trump administration unveiled PPP in 2020, the full impacts from the pandemic were just beginning to be felt in the economy. There was a race to get money out as quickly as possible because of how unpredictable the situation was, so the loans went through major banks that often had existing relationships with eligible businesses for the sake of expediency.
It set up a 14-day period in February 2021 when only companies with fewer than 20 employees could apply for PPP loans. It changed how PPP loans were calculated so that sole proprietors, independent contractors and self-employed people could receive funding equal to their needs. More of the loans went through community and minority-owned financial institutions.
“We inherited a program from the previous administration that was rife with inequities,” said Juan Guzman, the head of the Small Business Administration.
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