US winds down small business help scheme that gave $800b
The US government on Tuesday closed the books on the Paycheck Protection Program (PPP) that extended a almost $800-billion lifeline to smaller businesses to keep them afloat amid the Covid-19 pandemic.
Created by the CARES Take action rescue bundle in March 2020, the PPP emergency aid measure offered low-expense loans to smaller businesses which did not really need to be repaid if certain types of conditions were met.
In a statement announcing its May 31 closure, SMALL COMPANY Administration chief Isabella Casillas Guzman explained the program given $798 billion to 8.5 million small businesses and nonprofits in the united states.
"I've heard report after report from small business owners across the nation about how PPP cash helped them keep carefully the lights on, fork out their workers -- and gave them desire," Guzman said.
This program was part of Washington's response to the mass unemployment and business disruptions due to the pandemic, which also included cash payments to individuals and expanded unemployment benefits, in three significant relief measures.
However, the PPP confronted criticism early on following its initial cash had been quickly exhausted amid information large businesses, including major restaurant chains, partook of the cash, though some later returned the amount of money. In addition, it was dogged by fraud, with federal officials over the past year announcing a huge selection of charges involving half of a billion dollars allegedly bilked from the PPP and additional pandemic relief programs.
