"The Paycheck Protection Program (PPP) directed hundreds of billions of dollars to small businesses and other organizations adversely affected by the COVID-19 crisis, providing resources to maintain payrolls, to hire back employees who may have been laid off and to cover important overhead.But was this money well spent? A recent study offers evidence that the cost of each job saved was very high and that most of the program’s benefits flowed to small-business owners, their creditors and their suppliers rather than to workers. Other crisis programs, including unemployment insurance and economic impact payments, were targeted much more successfully to wage earners."
Continue reading the article online -> https://www.stlouisfed.org/publications/regional-economist/2022/jul/was-paycheck-protection-program-effective
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| "Only about one-quarter of PPP funds supported jobs that otherwise would have disappeared" |
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