- As the Paycheck Protection Program closes to new applications, the U.S. Small Business Administration releases data on its effectiveness
- Nearly $800 billion has been approved for more than 8.5 million businesses over the course of the program
- Ninety-six percent of loans in the latest round of funding went to businesses with fewer than 20 employees
Summary by Dirk Langeveld
The Paycheck Protection Program has issued nearly $800 billion in forgivable loans to more than 8.5 million businesses, according to the U.S. Small Business Administration.
PPP was established at the outset of the COVID-19 pandemic to provide financial assistance to struggling businesses. The loans can be fully or partially forgiven if the business owner meets certain conditions in how the funds are spent. Two funding rounds were approved in 2020, and a third round was approved for 2021.
SBA Administrator Isabella Casillas Guzman issued a statement praising the program while also acknowledging criticism that underserved businesses, especially those owned by women or people or color, were left out of the early funding rounds. Guzman said the final round of funding sought to address this shortcoming, and that the SBA will continue to pursue equity in its programs and services.
- The latest report on PPP data shows that 11.82 million loans totaling $799.83 billion have been approved in the program
- A total of 6.68 million loans with a cumulative value of $277.7 billion have been approved in 2021
- Nearly $292 billion was appropriated for 2021 lending; while the deadline has passed for new applications, the SBA has until the end of June to approve current loan applications
- Ninety-six percent of PPP loans in 2021 went to businesses with fewer than 20 employees, with the average loan size totaling $42,000
- A total of 55,162 loans totaling $3.24 billion were approved in 2021 for Connecticut businesses