ALERT: SBA Amends PPP Loan Eligibility for Business Owners with Criminal Records

ALERT: Small Business Administration Amends PPP Loan Eligibility for Business Owners with Criminal RecordsThe Small Business Administration issued a new rule expanding federal loan access to more small business owners with criminal records, a group that is disproportionately Black and Latinx, to help keep their businesses and employees financially afloat in the wake of COVID-19’s massive economic impact.

This rule comes in response to our suit filed last week challenging the SBA for denying federal PPP loans to tax-paying business owners with certain criminal histories — such as those with pending charges, those serving parole, probation, or those who have been convicted of a felony within the last five years.

By excluding people with a criminal record from the loan program, the SBA was magnifying the discrimination that is at the core of our criminal legal system. Under the new rule, small business owners with pending misdemeanor charges and those on probation or parole for older crimes may now apply for federal PPP loans.

“This is a win for our clients and others in similar situations. However, the SBA’s last-minute changes, issued just six days prior to the June 30 deadline, are a day late and a dollar short. Our lawsuit continues because newly eligible business owners must have more time to hear about the new rule and apply for the much-needed loans, and a smaller group of business owners remain excluded by the SBA.” – Joanna Wasik, Counsel

Every day, we are working to make real change for workers in our community. Help us continue the fight for workers of color and returning citizens today! Your support makes victories like this possible.

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