President Biden said Tuesday that large banks crowded out too many small businesses from getting access to federal funding last year as he touted his $1.9 trillion coronavirus relief package at a flooring company outside of Philadelphia.
He said when the Paycheck Protection Program was initially created last March, big banks pressed would-be applicants if they had a prior history with them.
“They didn’t want to deal with people who were on the short side,” Mr. Biden said at Smith Flooring, Inc. in Chester, Penn. “But you really made it work. And I think you should be aware that more help is on the way, for real.”
Mr. Biden was touring the company, which received the first installment of a PPP loan in April 2020 and another one this month, as part of his administration’s full-court press this week to sell the benefits of the relief package to the public.
The company’s second PPP installment came during a recent two-week window the Biden administration announced where only companies with fewer than 20 employees were allowed to apply.
The company plans to use the second round of funding to retain workers and upgrade technology.
Owner Kristin Smith thanked Mr. Biden for helping the small, minority-owned business.
“We’re grateful for the things that you’re doing,” she said.
Mr. Biden’s relief package didn’t extend the March 31 deadline to apply for funds through the program, but it allotted an additional $7.25 billion and opened it up to additional nonprofit groups.
Smith Flooring is also eligible for community “navigator” programs and an employee retention tax credit that are part of the $1.9 trillion package.
Mr. Biden also touted the direct payments of up to $1,400 per person that are already hitting Americans’ bank accounts.
Pennsylvania is due more than $12 billion in state and local aid and more than $5 billion for K-12 schools as part of the relief package, according to estimates provided by the White House.
Mr. Biden and other members of his administration hit the road this week to tout the benefits of the newly enacted law.
Vice President Kamala Harris was out west in Nevada and Colorado.
The Paycheck Protection Program was initially set up as part of the $2.2 trillion relief package Congress passed in March 2020.
It facilitates low-interest loans to companies that are forgiven as long as a certain portion of the funds are used on payroll expenses.
The Small Business Administration reopened the program in January after Congress authorized an additional $284 billion in December.
The deadline for applications for the latest round of funding is March 31, but Congress is moving toward approving a two-month extension.
• David Sherfinski can be reached at dsherfinski@washingtontimes.com.
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