Yesterday, the Biden administration announced changes to the PPP program: including a two-week focus on serving the smallest businesses, changes to the rules for independent contractors, and efforts to help other specific populations. 

Here are my two cents: these changes will do little to move the economic needle and our economy forward. Yes, we must focus efforts to help businesses that continue to be badly impacted by the Pandemic recover, but focusing on this program and effort alone will not be enough.   The changes yesterday might improve the PPP program results on the margin but will not dramatically change the end game.

In all likelihood, when the PPP program expires on March 31st, significant dollars will be left unused. These monies need to be redirected to create incentives and liquidity for entrepreneurs to start and grow new and existing businesses.  Traditional SBA lending is a great tool to do this.  Just last week, the SBA had to announce cuts to these economic incentives due to budgetary constraints.

We must find the right balance of tools to help our economic rebound.