The revamped COVID-19 relief program also allows some companies to apply for a second draw of up to $2 million.
The decision was a victory for media organizations that sued the SBA for access to data about roughly $600 billion in COVID-19 loans to small businesses.
The bank’s internal investigation found up to 125 employees applied for relief intended for small businesses.
Under proposed legislation, smaller businesses would be targeted, and they would have to show a 50% revenue drop.
“Congress must once again act urgently to support our most vulnerable small businesses through this crisis."
New guidance from the SBA comes after a public outcry over large companies receiving hundreds of millions of dollars in loans.
The government shutdown, now in its 28th day, is creating a backlog of loan approvals.
But Rep. Nydia M. Velázquez has introduced legislation to raise the small business loan guaranty limit to $23.5 billion.
Nearly 80% are unfamiliar with crowdinvesting and other new avenues for private financing.
The number of approved government-backed loans also rose, to 52,044, up 12%.
Working capital loans of $150,000 or less will incur no upfront guaranty fee or annual servicing fee.
A new Small Business Administration rule will make it easier for companies to secure government-backed loans.
