After mistakenly telling unknown numbers of small business owners that they are criminals and rejecting their applications for a Paycheck Protection Program loan, the U.S. Small Business Administration took steps this week to let actual previously incarcerated individuals access the program.
Along with a slew of changes aimed at increasing access to the $284.5 billion forgivable loan program, the Biden administration on Monday directed the agency to allow some small business owners with prior non-fraud felony convictions to obtain relief. The Biden administration also reconfirmed its commitment to upholding its enhanced fraud checks, as a means for curbing waste and abuse of federal systems.
Previously, a business was ineligible for PPP funds if it was at least 20 percent owned by someone who had been arrested or convicted of a felony related to a financial fraud within the past five years or, secondarily, any other felony within the previous year. Starting the first week of March, the agency has been directed to disregard the second restriction, unless the applicant or owner is incarcerated at the time of the application.