It's a common misconception that "the Planck Length is the smallest possible length". There are multiple layers of ignorance between us and any sort of statement like that.

First, it's possible that spacetime is quantized. I think most physicists would say that it's plausible or even likely, but we don't actually know it is, and certainly we don't know the details.

Then, if spacetime is quantized, it's possible that it's quantized in such a way that there's a minimum possible length... but not everything that's quantized has a minimum possible value, so it's also possible that there isn't such a minimum length.

If there is a minimum possible length, then we don't know what it would be. We know that it must be smaller than what we've probed, but we don't know how much smaller. Something in the vicinity of the Planck length is certainly plausible, since it is indeed much smaller than what we've probed, and it bears a natural relation to constants of the Universe that we do know about... but that's just our best guess; it could be something completely different.

And even if there is a minimum possible length and it's in the vicinity of the Planck length, that doesn't mean it's the Planck length exactly. Nobody would be in the least surprised if it turned out that the minimum possible length were half the Planck length, or pi times it, or whatever.

Now, one situation where we do know that the Planck scales have relevance is in the final stages of the evaporation of a black hole. If what we know about black holes extrapolates smoothly down to those scales (and that's a VERY big if), then a black hole with a mass comparable to the Planck mass would be radiating particles with an energy comparable to the Planck energy, which would indeed seem to set a limit of the Planck mass as the smallest possible size for a black hole. Actually, it'd mean a smallest possible size of many times that, as such a hole would be radiating a very great many particles. Of course, it's also quite possible, likely even, that what we know of black holes doesn't extrapolate that far, and that there's some new physics that we don't know that becomes relevant before then, but then the Planck scale is still relevant, as it provides a scale to let us know when we must be approaching that new physics.