Washington, D.C. -- The Paycheck Protection Program, one of eight small business support programs approved by Congress during the COVID-19 pandemic, closed its applications on May 31.
U.S. Small Business Administrator Isabella Casillas Guzman has issued the following statement on its closure:
“PPP provided over $798B in economic relief to 8.5 million small businesses and nonprofits across the nation, keeping employees on the payroll, giving small businesses and nonprofits the lifeline they needed to survive during a once-in-generation economic crisis. 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.”
The Paycheck Protection Program was one of the first disaster relief initiatives to specifically target small businesses impacted by COVID-19.
According to SBA reports, 32 percent of loans went to Low-and-Moderate Income communities, with Community Financial Institutions playing a pivotal role by lending to underserved communities during this period. PPP loans in 2021 averaged $42,000.