U.S. SMALL BUSINESS COVID RELIEF PROGRAM RUNS OUT OF MONEY
The government’s key COVID-19 relief program for small businesses has run out of money, Joyce M. Rosenberg reported for the Associated Press (AP) on May 6, 2021.
As per the Small Business Administration (SBA) on Wednesday (Thursday, May 6, 2021, in Manila) the Paycheck Protection Program (PPP) has been exhausted.
As of Sunday, the PPP had given out nearly 10.8 million loans worth more than $780 billion since April of last year.
More than half the loans and nearly a third of the loan money were distributed this year. The average loan size was $46,000, less than half the $101,000 average loan in 2020. That is a sign that smaller companies unable to get loans last year were now getting funding.
Companies have been drawn to the loans because they promised forgiveness if the money is used for payroll and other essentials. But, while the PPP helped save many companies devastated by the pandemic, the Biden administration has estimated that more than 400,000 US businesses have permanently closed due to the virus.