WASHINGTON—After more than $800 billion in loans disbursed—including more than $10 billion by credit unions–the Paycheck Protection Program (PPP) has come to an end after exhausting its funding.
First launched in April of 2020 after being hurriedly assembled as the COVID-19 lockdowns began being implemented, and with an initial $349 billion in funding, the program was at times a challenge to both lenders and borrowers alike as rules were tweaked, software bugs were addressed, and certain businesses were ineligible before being allowed to participate.
The initial funds allocated by Congress were quickly exhausted and funding was replenished two more times.
“The Paycheck Protection Program provided over 8.5 million small businesses and nonprofits the lifeline they needed to survive during a once-in-generation economic crisis. I’ve heard story after story from small business owners across the country about how PPP funds helped them keep the lights on, pay their employees -- and gave them hope,” said SBA Administrator Isabella Casillas Guzman. “At the same time, millions of underserved businesses – particularly our smallest businesses and those owned by women and people of color – were left out of early rounds of relief. I’m proud of the work we did to begin to rectify these inequities -- in 2021, 96% of PPP loans went to small businesses with fewer than 20 employees. Moving forward, we will continue to prioritize equity in all SBA’s programs and services.”
What NAFCU Survey Found
According to a NAFCU survey, 87% of its member CUs reported providing PPP loans to new members and businesses that were turned away by other lenders and came to their credit union to apply for a PPP loan. Moreover, compared to other types of lenders, credit unions disproportionately helped the smallest of small businesses.
NAFCU said an analysis of the SBA’s recently released PPP data shows that unions made loans in amounts much lower than the average size loan of $42,000. Furthermore, credit unions provided over $5.16 billion of PPP loans in 2021, NAFCU said.