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Biden is changing PPP rules

  • Biden is changing PPP rules so that only businesses with fewer than 20 employees can claim loans.

  • The restriction will last two weeks from Wednesday.

  • The president is expected to formally announce the changes on Monday.

  • Visit the Business section of Insider for more stories.

President Joe Biden is set to change the main US coronavirus aid program for small businesses on Monday to try to reach smaller, minority-owned businesses and sole proprietors left behind in previous rounds of aid.

Biden administration officials said that for two weeks starting on Wednesday, the Small Business Administration would accept applications for forgivable Paycheck Protection Program loans from only firms with fewer than 20 employees, to ensure that they are not crowded out by larger firms.

Experts have said that demand for the loans is slowing as firms reopen.

When the program was launched in April, its initial $349 billion ran out in two weeks. Congress approved another $320 billion in May, but the program expired in August with about $130 billion in unused funds.