Elgin Area Chamber Of Commerce: Paycheck Protection Program Closure
June 2, 2021
PPP has provided nearly $800 billion to small businesses and nonprofits across the nation, fueling the economy by supporting over 8.5 million small businesses and nonprofits
WASHINGTON – Today, U.S. Small Business Administrator Isabella Casillas Guzman issued the following statement on the closure of the Paycheck Protection Program (PPP) to new loan guaranty applications, which has provided over $798 billon in economic relief to small businesses and nonprofits across the nation, keeping employees employed and helping businesses come back stronger than ever.
“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. 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,” said SBA Administrator Isabella Casillas Guzman. “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, 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 percent of the loans going to Low-and-Moderate Income (LMI) communities. Additionally, Community Financial Institutions (CFIs) 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, please visit www.sba.gov/relief.
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
This press release was produced by the Elgin Area Chamber of Commerce. The views expressed here are the author’s own.