---
title: "Biden Changes PPP Loans in Favor of Smaller Businesses, Including Franchises"
url: https://burnaze.com/article/894d700d-ceec-4250-aebb-11cb5f4e6159
source: "1851 Franchise"
original_url: https://1851franchise.com/biden-changes-ppp-loans-in-favor-of-smaller-businesses-including-franchises-2715058
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A"]
published: 2021-02-23T15:10:32.000Z
modified: 2026-11-01T02:25:18.346Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/6a37a13be646e67fc09872f01e043fc74763.jpg
---

# Biden Changes PPP Loans in Favor of Smaller Businesses, Including Franchises

**TL;DR:** President Joe Biden announced changes to the Paycheck Protection Program, prioritizing small businesses with 20 employees or fewer for access to forgivable loans. The move will benefit small businesses, including franchised businesses, which are often sole proprietorships with fewer than 20 employees.

*originally published in 1851 Franchise on 2021-02-23. [Read the original](https://1851franchise.com/biden-changes-ppp-loans-in-favor-of-smaller-businesses-including-franchises-2715058).*

## Story

President Joe Biden announced on Monday that the Small Business Administration would prioritize small businesses with 20 employees or fewer for access to Paycheck Protection Program loans.

The SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees which will put sole proprietors, independent contractors and self-employed individuals at the front of the line to receive the forgivable loans. The 14-day period will start on Wednesday, February 24. Businesses that applied for PPP loans before the exclusive application period will still have their paperwork processed.

The move will benefit all small businesses that meet the criteria but could represent a particular bright spot for franchised businesses, which are often sole proprietorships with fewer than 20 employees. With approximately 775,000 franchise businesses in the U.S. providing jobs to about 8.43 million workers, the franchising industry includes thousands of firms that would qualify for the expedited loan process.

Besides prioritizing small businesses, the SBA has taken steps to make the lending program more accessible. These include allowing small business owners with delinquent student debt and non-fraud felony charges to receive the loans. The first round of PPP loans, opened in April, received harsh criticism for allowing big businesses to borrow millions and disproportionately lending to white business owners.

This time around, the SBA seems determined to make access to the business-saving loans more equitable.

“The SBA is a frontline agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural and other underserved communities in meaningful ways,” Michael Roth, the SBA’s senior advisor said when announcing the changes. “The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families build wealth.”

Biden echoed the need for the loans to target small businesses in an address announcing the changes.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- Small Business Administration (regulator)
- Joe Biden (person)
- small businesses (topic)
- ppp loans (topic)
- franchises (topic)
- lending program (topic)
- economic aid (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/biden-changes-ppp-loans-in-favor-of-smaller-businesses-including-franchises-2715058). Summarized by Burnaze (https://burnaze.com/article/894d700d-ceec-4250-aebb-11cb5f4e6159).