SBA Statement on PPP ClosureJune 8, 2021
On June 1, the U.S. Small Business Administration (SBA) Administrator Isabel Guzman issued a statement on the closure of the Paycheck Protection Program (PPP) to new loan guaranty applications. The PPP has provided nearly $800 billion in economic relief to over 8.5 million small businesses and nonprofits. In 2021, the SBA prioritized underserved businesses, particularly the smallest businesses and those owned by women and people of color –– 96 percent of PPP loans went to small businesses with fewer than 20 employees.
“The Paycheck Protection Program provided over 8.5 million 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.
The PPP played a major role in the recovery of the American economy, providing emergency funds to help businesses stay afloat and retain employees. Thirty-two percent of the loans went to Low-and-Moderate Income (LMI) communities. Community Financial Institutions (CFIs) played a crucial role in the 2021 round of PPP, lending to underserved communities, providing 1.5 million loans totaling $30 billion. In 2021, PPP loans averaged $42,000 –– another indicator showing that the loans went to the smallest small businesses.
Congress established seven other disaster relief programs to assist small businesses throughout the COVID-19 pandemic. You can learn more about these programs on SBA’s website.