The Paycheck Protection Program (PPP) is in the news again, as the list of the small businesses who received loans and for how much, is officially in hands of the public. Nearly 5 million small businesses took more than $650 billion in loans as of the end of June, used a lifeline to keep things going during the slowdown. The problem though is some of the loans made were quite questionable at best, upsetting many on Main Street why those who didn’t need a loan got it.
“The intent of PPP was to help a steadier employment picture during the COVID-19 shutdown, but yes, some businesses have tapped into the program who shouldn’t have,” explained LPL Financial Chief Investment Officer Burt White. “PPP has been far from perfect, but to focus on the few who shouldn’t have gotten a loan overshadows the enormous benefit received by so many that needed it.”
For more of Burt’s take on the PPP and why it has been a success, please watch our latest LPL Street View video below.
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