Paycheck Protection Program: Protected Jobs, Prevented Firm Closures, and Led to Job Creation
Summary
An infographic titled Paycheck Protection Program Protected Jobs, Prevented Firm Closures, and Led to Job Creation, drawn from the Business Dynamics Statistics for Recipients of SBA COVID Assistance Funding (BDS-SBA COVID, 2022) from SBA work with the U.S. Census Bureau. It reports about $800 billion distributed in 11.5 million loans, with 97% of loans forgiven. It says young firms that received early first draw loans had 46% lower rates of firm closure in 2022 than non-recipients, that firms receiving both first and second draw loans created more jobs, and that Biden-Harris policy changes substantially increased the share of loans to the smallest and youngest firms.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Paycheck Protection Program
Protected Jobs, Prevented Firm Closures, and Led to Job Creation
For small (1-19 staff) and
young (1-5 years) firms, For small (1-19 staff) ~9 Businesses that
received both 1st
early loan recipients firms, simply Million jobs and 2nd draw
protected jobs at participating in loans created
created in a
much higher Jobs PPP increased
one-year Jobs an average of 1
rates compared the rate of jobs job on net in a
to non-recipients Protected protected
span* Created one-year span*
Mid-size (20-499 staff) firms,
Single-draw recipients
that received both 1st and
recorded near-zero net
2nd draw loans had the highest job
job creation rate in a one-year
protection rates
span*
Prevented Firm Closures *March 2021 - March 2022
46%
lower rates of firm closure in For small (1-19 staff) firms, Small (1-19 staff) firms with
2022 for young (1-5 years) firms simply participating in PPP early loans saw the lowest
who received early 1st draw was associated with lower closure rates relative to
compared to non-recipients closure rates non-recipients
Key Takeaways
Timing of the loan impacted firms
For young (1-5 years) firms, early loan recipients protected more jobs and prevented
more firm closures while dual-draw recipients created more new jobs
Older (>10 years), mid-sized (20-499 staff) firms displayed greater economic outcomes
Older (>10 years) firms were first to access funding, and policy interventions enabled
young (1-5 years) and small (1-19 staff) firms to participate
Data Source: Business Dynamics Statistics for Recipients of SBA COVID Assistance Funding (BDS-SBA COVID, 2022)
www.census.gov
Paycheck Protection Program
Protected Jobs, Prevented Firm Closures, and Led to Job Creation
Fast Facts and Program Timeline
Purpose: Provide relief to small businesses during the COVID-19 pandemic to preserve jobs and prevent
establishment closures. These low-interest loans were fully SBA-guaranteed and eligible for full loan forgiveness. The
SBA collaborated with the U.S. Census Bureau to assess the economic outcomes of PPP.
Coronavirus Aid, Relief, and
American Rescue Plan
Economic Security (CARES)
Act (2021)
Act establishes PPP
Program More funding **Biden-Harris policy
Program ended
exhausted funding provided changes implemented
April 3 – 16, February 24 –
Round 1 April 27 – August Round 2 June 30, 2021
2020 8, 2020 March 9, 2021
**Biden-Harris interventions substantially increased the share of loans to the smallest and
youngest firms, ensuring that PPP lending in traditionally underserved areas was
comparable to their share of small businesses.
Uniform
$800 billion 11.5 million 97% of loans rural/urban
distributed loans forgiven distribution
Firm Size Participation Firm Age
48M 10X 3X 2X
more small (1-19 staff) as many startups (0 as many young (1-5
years) firms received years) firms received
workers at small (1- firms received a PPP loan
PPP loans in later first PPP loans in later first
19 staff) firms weree compared to mid-size draw compared to
draw compared to
supported by PPP (20-499 staff) firms in the early first draw early first draw
later first draw
Data Source: Business Dynamics Statistics for Recipients of SBA COVID Assistance Funding (BDS-SBA COVID, 2022)
www.census.gov
File and source
- File
- 2025-01_ppp-flyer_0.pdf
- Size
- 1,020,634 bytes
- SHA-256
- f40bb1df391f3b16183fe161d93192d51f078470e5c3441b8d602b1125504fda
- Our copy
- 2025-01_ppp-flyer_0.pdf
- Original
- www.sba.gov