Small-business requests for money from the federal government’s signature COVID-19 relief initiative are running well below last year’s heady pace, prompting changes in the program’s final month to reach the hardest-hit businesses, the Wall Street Journal reported. The Small Business Administration yesterday released new guidance on the changes to the Paycheck Protection Program. It revamped the formula for calculating loans to sole proprietors and some other businesses, making the program more attractive to the smallest firms. Justin Burgess of Deco-Dence Gallery & Studio, a dealer of art deco furniture and a custom-furniture maker in Dallas, had initially decided not to apply for a second PPP loan this year after receiving $3,000 in 2020. “It was just a pittance,” said Mr. Burgess, whose sales have fallen by roughly 50% during the pandemic. “It was a lot of work for very little return.” The new approach should “make it much more advantageous,” said Mr. Burgess, who now plans to apply for a second loan. SBA data as of Feb. 28 show the agency had approved 2.2 million PPP loans totaling about $156 billion — just over half the funds available — during the newest round. After closing last August, the PPP reopened in January with $284 billion in funding to provide forgivable loans to first- and second-time borrowers. The deadline for applications is March 31.
