The Paycheck Protection Program Had a Short Positive Impact, But PPP2 Needed: Biz2Credit
The
Paycheck Protection Program (PPP), helicopter money disbursed by the federal government to aid businesses crushed by the ongoing COVID-19 pandemic had a positive effect but the overall impact has been short-lived, according to research provided by
Biz2Credit.
The online lender states that the government lending programs restored sufficient capital for businesses to weather the effects of the pandemic briefly, but that many firms are currently operating at a monthly loss. PPP2 is needed, said the firm.
Under the
Cares Act, the PPP provided loans to businesses under duress. The money would be forgiven if employers maintained their payroll. The program, while not perfect, has been well received by the business community. But as the coronavirus lingers, and some state governments are enacting shutdowns, many people believe a second stimulus is needed to stop business closures.