WASHINGTON, D.C. — The Paycheck Protection Program, among the first COVID-19 economic disaster relief programs to provide emergency funds to businesses affected by the pandemic, has supported the smallest of small businesses, with 32% of the loans going to low- and moderate-income (LMI) communities.
Community Financial Institutions (CFIs) also played a pivotal role in 2021 PPP lending to underserved communities during this period, providing 1.5 million loans totaling $30 billion. PPP loans in 2021 averaged $42,000, another indicator of targeted relief to the smallest small businesses.
In Kentucky, over $7.8 billion in PPP funds went to almost 130,000 small businesses and nonprofit organizations. This included funding from March–August 2020 and January–May 2021. There were almost 79,00 PPP forgivable loans in 2021 alone for over $2.5 billion.
The PPP is one of eight disaster relief programs established by Congress to assist small businesses during the COVID-19 pandemic. Other programs include Economic Injury Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and SBA Debt Relief program.