U.S. Small Business Administrator Isabella Casillas Guzman issued a statement June 1, on the closure of the Paycheck Protection Program (PPP) to new applications.
“PPP provided over $798 billion 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,” said 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.”
Thirty-two percent of loans went to Low-and-Moderate Income (LMI) communities, with Community Financial Institutions (CFIs) playing a pivotal role by lending to underserved communities during this period. PPP loans in 2021 averaged $42,000, showing the administration’s success targeting the smallest small businesses.
The PPP is only one of eight programs established by Congress to assist small businesses during the pandemic. Learn more at sba.gov/relief.
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