New Rules For PPP Loans Aimed To Level Playing Field Giving Philadelphia Small Businesses Another Lifeline
PHILADELPHIA (CBS) -- Starting Wednesday, small businesses are getting another chance to stay afloat during the COVID-19 crisis. New rules for the Payment Protection Program are leveling the playing field for even the smallest businesses, this time focusing on those with fewer than 20 employees.
"We were told that it was going to be for a few weeks," Steve Jamison, owner of Blue Sole Shoes, said. "In fact, I think it was something like two weeks initially. And then two weeks went to four and four went to a couple of months."
In other words, businesses weren't making any money as the city was shut down due to COVID-19.
Jamison is the owner of Blue Sole Shoes in Center City. When he needed it most, he turned to the federal government and received a PPP loan to keep his employees on the payroll.
"The business environment is still volatile, so it's real important to have those kinds of things in place," Steve Jamison said, "and I know it will help other businesses as well. It helped me."
He's now in the process of applying for a second PPP loan. It comes as the Small Business Association eases some of the regulations. The changes are meant to help the smallest of the small businesses, particularly those owned by minorities.
"The PPP is so timely, and we cannot sit on the sidelines as a city and not get Black and Brown businesses to apply to try to stay in business during this period we're in," Della Clark with the Enterprise Center said.
Clark is the president of the Enterprise Center in West Philly. They have a goal of $100 million to give to small businesses that apply.
"That's the best thing since bread and butter," Clark said. "It is, because it's tax-free money."
All businesses are encouraged to apply for the PPP loans, but the Enterprise Center is focusing on minority-owned businesses.
Clark says they were disproportionately affected by the shutdowns and less likely to receive federal aid. For the next two weeks, the SBA will only accept applications from businesses with fewer than 20 employees. Sole proprietors and independent contractors can also apply.
If all rules are followed, the loan is forgivable.
"It's a way to keep you afloat as we pivot out of this recession and this pandemic that we've been in, so it buys you more time," Clark said.
The new eligibility requirements are in effect now. To help small businesses apply, the Enterprise Center is hosting a workshop this Friday. You can find more information by clicking here.
