See interactive map application of PPP loan distribution in NYC
See Tableau Dashboard of PPP loan distribution in NYC
Stay tuned for an expanded blog post on methodology and more in depth analysis
Background
Established through the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020 the Paycheck Protection Program (PPP) is a $953 billion business loan program designed to provide a direct incentive for small businesses to keep their workers on payroll. Allocation for the program in 2020 was done in three installments: 1) $349 billion in March through the CARES Act; 2) $320 billion on April 24, 2020 through the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266); and 3) $284 billion on December 27, 2020 through the Consolidated Appropriations Act, 2021 (H.R. 133).
Additionally in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act to reauthorize the PPP that ended in August 2020. The purpose was twofold: 1) offer funding to small businesses that didn’t receive a PPP loan in the 1st round and 2) give certain qualified businesses the change to get a second PPP loan.
Before the $284 billion was allocated in December, the original deadline to apply for PPP was June 30, 2020. However, $130 out of the $669 billion remained unallocated and because of the dire need businesses faced during the pandemic, former President Trump signed into law P.L. 116-147 on July 4, 2020, to extend the application period through August 8, 2020.
This program was initially intended to run through March 31, 2021 or until funds run out, however on March 30, 2021, President Biden signed the Extension Act of 2021 (H.R. 1799) to extend the application deadline from March 31 through June 30, 2021.
Prior to the extension, President Biden on March 11, 2021 signed into law the $1.9 trillion economic recovery package, the American Rescue Plan of 2021 (ARP Act). The ARP Act included an additional $7.5 billion to the PPP and extended eligibility to several types of non-profit, tax-exempt organizations.
What is the Loan
The PPP is an expansion of the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program and provides loans for businesses who typically would not be eligible to receive 7(a) loans. The main difference between an EIDL and a PPP loan is that EIDLs cap is $2 million and the first $10,000 of the EIDL advance is automatically forgiven, whereas the cap for PPP loans are up to $10 million and are 100% forgivable if the borrower adhered to the forgiveness rules laid out by the SBA.