In temporary remarks on Monday afternoon, President Biden cast the shifts in the program as a salve for hard-hit business homeowners who’ve struggled to profit from the authorities’s help efforts so far.
“Getting our economy back means bringing our small businesses back,” Mr. Biden mentioned. He additionally known as on Congress to go his American Rescue Plan, which is on monitor to go the House this week and contains $50 billion for hard-hit small companies — although no extra money for P.P.P.
Mr. Biden mentioned the program would nonetheless expire at the finish of March, even with the two-week pause on functions for all however the smallest companies, which can take impact on Wednesday.
Mr. Biden mentioned the freeze would enable extra authorities resources to be dedicated to serving to the sorts of small companies that don’t have staff devoted to navigating the loan course of.
The present version of the P.P.P. program was authorised as a part of December’s financial reduction package deal, wherein Congress allotted $284 billion to restart the help program. Banks and different financiers, which make the government-backed loans, have disbursed $134 billion to 1.8 million companies since lending resumed final month. The money is meant to be forgiven if recipients adjust to the program’s rules.