When the pandemic hit, many small businesses were left out in the cold. After being compelled to close or adjust operations via government edict, many entrepreneurs were forced to cut ties or temporarily furlough works. According to a report from Yelp, 55 percent of businesses on their site that had to close in March, will never reopen.
In response, Congress and the Trump administration passed the CARES Act, which included the Paycheck Protection Program—a forgivable loan program designed to help businesses keep their workforce employed during the pandemic. Over the lifespan of the loan period, over 5.2 million businesses received a lifeline.
In total, over $525 billion approved dollars went to assist Main Street, helping to keep Americans employed, and the average loan size was $100,729—meaning true small businesses received a bulk of the benefits.
Small businesses are the engine of the economy, employing over 58 million people and providing communities with necessary goods and services. Without help from the Paycheck Protection Program, our economy would have taken a worse tumble then it did.
Small businesses will drive the economic recovery. The Paycheck Protection Program gave them the head start they needed.