On June 1, 2021, Small Business Administrator Isabella Casillas Guzman announced the closure of the Paycheck Protection Program (PPP). Since the program was first introduced through the “Coronavirus Aid, Relief, and Economic Security Act” it has dispersed $798 billion in loans to small businesses and nonprofit organizations.
Over 8.5 million employers received PPP loans to cover payroll costs and nonpayroll costs such as rent, mortgage interest and utilities since the program began. The program was so popular it was extended and modified on multiple occasions, including the introduction of Second Draw PPP Loans through the Consolidated Appropriations Act, 2021, and propped up with additional funding with the last COVID-19 relief bill, the American Rescue Plan Act.
The Small Business Administration noted in 2021, 96% of PPP loans went to businesses with fewer than 20 employees with the average loan at $42,000.
Please reach out to your Somerset Advisor with any questions. If you do not work with Somerset, now is a great time to become acquainted. Contact us at 317.472.2200 or with any questions. As always, we are here and ready to help.