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PPP has provided nearly $800 billion to small businesses and nonprofits across nation, fueling economy by supporting over 8.5 million small businesses and nonprofits
Small Business Administration Administrator Isabella Casillas Guzman made the following statement on the closure of the Paycheck Protection Program to new loan guaranty applications, which has provided over $798 billion in economic relief to small businesses and nonprofits across the nation, “keeping employees employed and helping businesses come back stronger than ever.” The SBA office of capital access notified PPP-participating lenders that, at 7 p.m. ET on Friday, May 29, the portal would close:
“The Paycheck Protection Program provided over 8.5 million small businesses and nonprofits the lifeline they needed to survive during a once-in-generation economic crisis,” Guzman said. “I’ve heard story after story from small business owners across the country about how PPP funds helped them keep the lights on, pay their employees – and gave them hope. At the same time, millions of underserved businesses – particularly our smallest businesses and those owned by women and people of color – were left out of early rounds of relief. I’m proud of the work we did to begin to rectify these inequities – in 2021, 96% of PPP loans went to small businesses with fewer than 20 employees. Moving forward, we will continue to prioritize equity in all SBA’s programs and services.”
A press release stated, “The Paycheck Protection Program, among the first COVID-19 economic disaster relief programs to provide emergency funds to small businesses affected by the pandemic, has played a historic role in America’s recovery. The Biden-Harris administration has pushed an effective and equitable implementation of this program, with a focus on ensuring small businesses receive the backing they need to stay afloat and continue to employ millions of Americans. The program has supported the smallest of small businesses with 32% of the loans going to low-and-moderate income communities. Additionally, community financial institutions played a pivotal role in 2021 PPP lending to underserved communities during this period, providing 1.5 million loans totaling $30 billion. PPP loans in 2021 averaged $42,000, another indicator of targeted relief to the smallest small businesses.”
The PPP is only one of eight disaster relief programs established by Congress to assist small businesses during the COVID-19 pandemic. Other programs include Economic Injury Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and SBA Debt Relief program. To learn more about these programs, visit www.sba.gov/relief.