PPP, especially the first round, probably did save some jobs, as the employer had to have true employee costs for at least an 8 week period after getting the PPP handout, to get the PPP loan forgiven.
The wide opening of the doors to the PPP program, as they loosened eligibility, etc, probably did not save many jobs, but it sure lined the pockets of smart business owners who played the game.
So, if asked the question, was the taxpayer money spent on PPP worth it. Yes for those in hospitality industry, and in first round, for medical/dental offices who were forced closed by the government. But, other than that, the taxpayer cost was probably a bit of a waste.
In hindsight, eligibility rules should have been much narrower for program to have a positive cost/benefit analysis. But, along the same lines, how essential was a $1,400 per person stimulus payment to people who are, and have been, employed during this whole 12 month pandemic period???
Terry Anstine, President
Five Points Bank of Hastings
2815 Osborne Dr West
Hastings, NE 68901
(402) 462-2228
NMLS #420297
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Original Message:
Sent: 3/29/2021 12:59:00 PM
From: Barb Rehm
Subject: Tuesday Topic: How Many Jobs did PPP Save?
The answer to our headline's question ranges from 1.3 million (Brown University) to 50 million (Rep. Blaine Luetkemeyer, R-Mo.) But the truth is no one knows. Why? Because the SBA doesn't have the data needed to do the math. This comes as no surprise, given the programs hasty, confusing, and all-around chaotic administration. But it's still depressing. This is a $953-billion government program, that Congress just extended for another two months, to May 31. And yet, as this Politico story notes, "Congress, the Biden administration and even small-business advocates have no firm estimate of how many jobs it saved." Judging from what you've seen in your local markets, did PPP accomplish its goals? Or put more bluntly, was the program worth the cost? Tell us what you think.
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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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