Washington, D.C.— Today, House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) issued the following statement after the Biden administration announced reforms intended to ensure that the smallest of small businesses can access the Paycheck Protection Program (PPP):
“Shortly after the inception of PPP, evidence emerged that the smallest of small businesses weren’t getting the same access to relief as their larger counterparts with ties to big banks. For nearly a year, I’ve fought for set-asides for these small businesses and worked to empower the community and mission-based lenders that they rely on. We’ve made meaningful progress; program data shows that the distribution of funds has become more equitable as Congress has made changes. But with so many businesses struggling, there is much more work that needs to be done.
“Today’s actions by the Biden administration reflect committee priorities and I was proud to collaborate on their construction. These reforms show that the President understands the reality these underserved businesses face and is committed to delivering them an equitable recovery. By increasing access to PPP for firms with fewer than 20 employees, the administration will extend access to more underserved businesses and firms owned by people of color. 98% of small businesses have fewer than 20 employees, making them integral to our economy’s foundation. Their wellbeing is essential to our nation’s overall recovery, and I look forward to continuing to work with the President to make sure they have the resources they need.”