Overall, the government has distributed more than $ 11.6 million in forgivable loans worth more than $ 795 million to small businesses since April 2020, an unprecedented program for a segment of the economy. which rarely receives direct aid – and even less bailouts – during economic crises.
But the PPP was made for unprecedented times. The local economy, which bore the brunt of the financial success stemming from the shutdowns, had to be saved and fast, along with tens of millions of small business workers.
The program, which Congress expanded twice, has been plagued by operational problems since the first round, with lenders free of having received insufficient guidance on how to process loans and complaints from borrowers that larger banks were favoring. existing customers versus other loan applicants.
More recently, some lenders have complained that the agency that manages the program, Small Business Administration, has not provided enough information about how much money was left, which led to a fight over last-minute requests.
The agency kept lenders informed weekly about the level of funding through the program’s lender portal, said Shannon Giles, SBA spokesman.
“There’s a kind of PPP post-traumatic stress disorder, just because it’s been a major struggle for a long time and you also know that the program changed fundamentally from the first round to the second round,” said Kurt Chilcott, president of a PPP Provider in San Diego, CDC Small Business Finance Still, he said PPP was a success.
The PPP can then be seen up close in three graphs.