Covid brought into focus the importance of our small business community like nothing has before it. While every politician speaking of small business uses the same line that they are “the backbone of our economy, provide the most innovation, and create the most jobs,” this sentiment does not always translate into helpful policy for those small businesses. Despite what we all hope, the Covid pandemic is far from over, and for many small businesses the impact will be felt for years to come. If the U.S. government truly believes small businesses are so critical to our economy, it must stay focused on the health of our small businesses and extend and replenish PPP.Paycheck Protection Program Must Be Extended And Replenished To Help The Smallest Businesses
Forbes April 22, 2021
If PPP closes on May 31st as scheduled, or likely even sooner as funds are running low, the smallest businesses
risk being permanently left on the sidelines without the assistance they need. As this deadline nears,
it is urgent that Congress act promptly to extend PPP and replenish funding one more time, with a laser focus
on helping the smallest businesses that effectively were not included for the program’s first ten months.
Congress created the Paycheck Protection Program (PPP) to help small businesses, their employees and
communities survive the COVID-19 pandemic. In many ways PPP has succeeded for America’s economy and
definitely for the largest small businesses. But PPP has failed our smallest small businesses and has largely
failed minority-, women- and veteran-owned businesses.
To ensure that PPP helps all of America, including in rural, minority and other vulnerable communities,
Congress should immediately refine the program so assistance flows only to the smallest and most vulnerable
businesses that have been left out up to this point, and extend it to give these businesses a realistic opportunity
• By capping loans at $50,000 and limiting applicants to companies with fewer than 10 employees, PPP
will target the businesses that have not yet benefited.
• By replenishing PPP funds (which are likely to run out mid-to-late May) with an additional $75 billion,
and extending PPP for an additional six months, the smallest and most vulnerable businesses will
have time to apply for a loan.
These simple, inexpensive steps would allow PPP participation by millions of small businesses – primarily
from underserved communities – that have been essentially shut out of the program so far. The results would
make PPP the most equitable and broadly successful small business support program ever.
Looking forward, Congress should also create a “small business restart” program that helps millions of small
businesses, particularly sole proprietors, get back on their feet.
Read the full report here.