Even after the U.S. Small Business Administration expanded availability to the groups hit hardest by the Covid-19 economic downturn, local lenders and business experts say more needs to be done to help underserved businesses.
The latest $284 billion Paycheck Protection Program round opened in January, offering a second opportunity for financial assistance to companies battling the effects of the pandemic. The second round of PPP also gives businesses who weren’t able to get a loan last year another shot at what many have described as a lifeline. Speaking on a panel at the Philadelphia Business Journal's 2021 Economic Forecast event, local experts said PPP still has some issues when it comes to helping underserved businesses.
The SBA prioritized applications from community development financial institutions in the first few days of the program reopening, a move designed to help minority-owned and disadvantaged businesses shut out of the previous round of funding.