The Paycheck Protection Program (PPP) was a government initiative to help small businesses affected by the COVID-19 pandemic and economic crisis.
The PPP distributed nearly $800 billion in loans to small businesses in the United States to help them retain employees and boost local economies, according to an article published by the Tyler Paper on January 6, 2023. It is estimated to have saved between 1.4 and 3.2 million jobs as of December 2020.
To be eligible for loan forgiveness, recipients were required to use 60% of the allocated funds for payroll. Two-thirds of PPP loans, or 66%, were approved for less than $25,000, while a smaller percentage of loans were approved for larger amounts, with 10% approved for over $125,000. The remaining loans fell between $25,000 and $99,999.
Construction businesses with fewer than 500 employees received the most PPP loans, at nearly $98 billion. The healthcare and social assistance industry received roughly $96 billion, and the professional, scientific, and technical industry received roughly $94 billion. Accommodation and food services received the fourth largest amount in PPP loans overall.
PPP funds varied by state, with northern states receiving more per capita than southern states. The Anniston Star stated in their article that North Dakota received the most, at $3,734 per person, while West Virginia, New Mexico, and Arkansas received the least.
Texas received $62.7 billion in PPP funds, with a per capita total of $2,125. The median PPP loan amount was $20,750, and 95.3% of approved funds were forgiven. The leading industry sector for PPP funds in Texas was Professional, Scientific, and Technical Services.
While, the United States received a total of $792.6 billion in PPP funds, with a per capita total of $2,388. The median PPP loan amount was $20,689, and 95.2% of approved funds were forgiven. The leading industry sector for PPP funds in the United States was Construction.