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Payroll Protection Plan Epilogue

Author

Listed:
  • Douglas David Klein

    (New Jersey City University, United States)

  • Zion Kang

    (Student, Jeju International School, Korea)

Abstract

The Paycheck Protection Program (PPP), part of the CARES Act passed by the United States Congress in 2020, was instituted as a response to social distancing restrictions during the COVID pandemic that shut down large parts of the American economy. The purpose of PPP was to provide small businesses (and corporations with 500 employees and less) with easy-access loans to help make essential operating payments such as rent, utilities and payroll. If PPP funds were properly used as promised, then the amount borrowed would be forgiven - meaning the loan would be converted to a grant and the borrowed funds would never have to be repaid. The PPP was rolled out in two phases: April 2020 and January 2021. This paper will address if the program worked as envisioned - what was the PPP’s ultimate effectiveness? Did it really save jobs and businesses from failing? This paper will also research the percentage of fraudulent or criminal PPP loans - was there widespread fraud, abuse and misuse of the easy-access funds?

Suggested Citation

  • Douglas David Klein & Zion Kang, 2021. "Payroll Protection Plan Epilogue," RAIS Conference Proceedings 2021 0101, Research Association for Interdisciplinary Studies.
    • Handle: RePEc:smo:lpaper:0101
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    References listed on IDEAS

    as
    1. Garrett Borawski & Mark E. Schweitzer, 2021. "How Well Did PPP Loans Reach Low- and Moderate-Income Communities?," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2021(13), pages 1-5, May.
    2. repec:aei:rpaper:1008582843 is not listed on IDEAS
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    More about this item

    Keywords

    Paycheck Protection Program; effectiveness; fraud; abuse; businesses; jobs; loans;
    All these keywords.

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