{"id":442092,"date":"2021-02-23T09:29:15","date_gmt":"2021-02-23T14:29:15","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=442092"},"modified":"2021-02-23T09:29:15","modified_gmt":"2021-02-23T14:29:15","slug":"biz2credit-supports-biden-harris-administrations-ppp-changes-to-promote-more-equitable-access-to-capital","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/biz2credit-supports-biden-harris-administrations-ppp-changes-to-promote-more-equitable-access-to-capital\/","title":{"rendered":"Biz2Credit Supports Biden-Harris Administration\u2019s PPP Changes to Promote More Equitable Access to Capital"},"content":{"rendered":"

\nLargest Provider of SBA-Approved PPP Loans (Over 98% to Businesses with Under 20 Employees) Says Rules Changes Will Improve Access in Underserved Communities
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NEW YORK and WASHINGTON, Feb. 23, 2021 (GLOBE NEWSWIRE) — Biz2Credit, a leading FinTech company and parent of an SBA-approved processor of Paycheck Protection Program (PPP) loans, is applauding the reforms to the PPP that the Biden-Harris administration announced<\/a> on Monday, Feb. 22, 2021, it would soon implement.<\/p>\n

Biz2Credit\u2019s funding subsidiary is the largest provider of approved PPP loans, according to data released by the SBA<\/a> as of Feb. 21, 2021. The company has risen to the top of the rankings of PPP providers with 139,559 SBA-approved PPP loans by serving the smallest businesses, especially self-employed individuals and minority and women-owned businesses, with over 98% of its approved loan applications coming from businesses with fewer than 20 employees.<\/p>\n

\u201cThe increased access to capital that we are providing for the hardest-hit and underserved small businesses is a clear testament to the importance of digital lending,\u201d said Rohit Arora, CEO of Biz2Credit. \u201cThe fact that we have secured almost twice as many approvals vs the nation\u2019s two largest banks indicates that a digital platform is the best strategy for serving the broadest range of small business clients, especially for a program as urgently needed as the PPP.\u201d<\/p>\n

Biz2Credit is now stating that it supports the Biden-Harris administration\u2019s efforts to increase the flow of capital to these smallest businesses. Specifically, the administration will:<\/p>\n

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  1. \n Institute a 14-day period, starting Wednesday, Feb. 24<\/strong>, during which only companies with fewer than 20 employees can apply for PPP relief. Roughly 98% of small businesses have fewer than 20 employees, and they are Main Street businesses that anchor neighborhoods and create jobs. <\/li>\n
  2. \n Help sole proprietors, independent contractors, and self-employed individuals receive more financial support<\/strong>. Businesses, such as home repair contractors, beauticians, and small independent retailers, make up a significant majority of all businesses. Among them, companies without employees are 70% owned by women and people of color. Yet many have been structurally excluded from the PPP because of how the loans are calculated. To address this problem, the administration will establish a $1 billion set aside for businesses in the category without employees located in low- and moderate-income (LMI) areas, and will revise the loan calculation formula for these applicants so that it offers more relief.<\/li>\n
  3. \n Eliminate a restriction that prevents small business owners with prior non-fraud felony convictions from obtaining PPP funding.<\/strong> Currently, a business is ineligible if it is at least 20% owned by an individual who has either: (1) an arrest or conviction for a felony related to financial assistance fraud within the previous five years; or (2) any other felony within the previous year. To expand access to PPP, the administration will adopt bipartisan reforms included in the PPP Second Chance Act that would eliminate the second restriction (the one-year look-back) unless the applicant or owner is incarcerated at the time of the application.<\/li>\n
  4. \n Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining PPP relief.<\/strong> Currently, the PPP is not available to any business with at least 20% ownership by an individual who is currently delinquent or has defaulted within the last seven years on a federal debt, including a student loan. Millions of Americans are delinquent on student loans, including a disproportionate number of Black borrowers. Working with the Departments of the Treasury and Education, the SBA will remove the student loan delinquency restriction to broaden access to the PPP.<\/li>\n
  5. \n Ensure access for non-citizen small business owners who are lawful U.S. residents by letting them use Individual Taxpayer Identification Numbers (ITINs) to apply for PPP funding.<\/strong> All lawful U.S. residents may access the PPP, but there has been inconsistency in access for ITIN holders, such as Green Card holders or individuals who are in the U.S. on a visa. The SBA will address this by issuing clear guidance in the coming days that otherwise eligible applicants cannot be denied access to the PPP because they use ITINs to pay their taxes.<\/li>\n<\/ol>\n

    \u201cBusinesses with fewer than 20 employees often have struggled more than larger businesses to collect and submit the necessary paperwork and secure relief from a lender. It is a bit complicated, and just one mistake in submitting forms can significantly delay funding,\u201d added Arora, whose SBA-approved lending subsidiary has processed more PPP loans than any other lender.<\/p>\n

    \u201cThe 14-day exclusive application period will allow lenders to focus on serving these smallest businesses, which has been an ongoing commitment of Biz2Credit through this process,\u201d Arora said. \u201cMany of these truly small businesses are women-owned and minority-owned firms. They are the backbone of local economies.\u201d<\/p>\n

    Since PPP reopened in January, 98% of Biz2Credit\u2019s approvals have gone to firms with fewer than 20 employees. Sole proprietors, independent contractors, and eligible self-employed individuals comprise 72.5% of the approvals, totaling more than 100,000 as of figures released by the SBA on Feb. 22.<\/p>\n

    Additionally, the Biden-Harris administration announced its continuing commitment to enhancing the PPP application process to ensure accountability by:<\/p>\n