The Payroll Protection Program (PPP), a massive federal aid program meant to help small businesses stay afloat and sustain payrolls during the antivirus shutdowns and quarantines, has attracted considerable criticism, including accusations of corruption. Lawyers have filed suits, congressional representatives have complained, and journalists have highlighted abuses. While abuses have likely occurred, PPP aid nonetheless seems to have flowed quickly to the small businesses that it was intended to help.
Launched in early April as part of the $2 trillion CARES Act and intended to help firms with 500 or fewer employees, the PPP was originally funded at $342 billion. The money included aid for larger restaurant and hotel chains, presumably because they have been especially hard-hit by the coronavirus emergency and because they employ millions of people. Placed under the auspices of the Small Business Administration (SBA), the PPP offered aid through loans on attractive terms that promised forgiveness if the borrowed funds were used predominantly to support payrolls or rehire workers laid off during the emergency.
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