Did the $500 Billion in USA Aid Help Global Small Businesses?

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Some economists say the Paycheck Protection Program (PPP) has not proved as useful as other aid.  Academic economists who have studied the program have concluded that it has saved relatively few jobs and that, at a cost of more than half a trillion dollars, it has been far less efficient than other government efforts to help the economy. 

On the other hand, there are global small business owners who if they hadn't received a PPP loan, they would have been out of business.

The debate could sway the new Biden administration’s plans.  The question becomes:  Are we about saving jobs or saving businesses? 

Read on to discover whether the $500 billion in USA aid helped save global small businesses during the onslaught of the global pandemic.

Key Details About the Second Round of PPP Loans for Small Businesses

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More Paycheck Protection Program (PPP) loans are coming.  President Donald Trump has signed into law a new $900 billion coronavirus relief and stimulus package.  Among its provisions: An extension of last spring’s PPP, allowing another $284 billion or so in forgivable, federally backed loans for ailing small businesses.

Here are some answers to questions business owners might have.

Who Was the Aid (PPP) Intended For?

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The Paycheck Protection Program (PPP) was billed by the U.S. Treasury Department as a way for small businesses with generally fewer than 500 employees to cover overhead, retain employees, and rehire those who had been laid off as a result of the pandemic.

But data released earlier this month by the U.S. Small Business Administration shows large PPP loans were received by District-based companies that have global business interests, pay some of their employees six-figure salaries, and, in certain cases, appear to have other means of raising money. (Precise loan amounts weren’t specified in the data; the SBA reported loan ranges up to $10 million.)

Explore more about how big D.C. companies scooped up pandemic aid intended for small businesses.