Most Of The $800 Billion In PPP Loans Did Not Go To Workers, New Study Finds
DALLAS (CBSDFW.COM) - The federal Payment Protection Program was supposed to help keep millions of Americans on the payroll during the COVID-19 crisis.
But, according to a new study, only about a third of the $800 billion went directly to workers who otherwise would have lost their jobs.
A new National Bureau of Economic Research study found that 66% to 77% of the money from the program did not go to paychecks. Instead, most of money ended up in the hands of business owners and shareholders.
The study traced the money from the federal relief program even further and found 72% of the money flowed to the top-fifth of household incomes, meaning most of the money from PPP loans went to people making six-figures.
The study notes, prior to the pandemic, the US had no system in place to target the most needy Americans during emergencies. So instead, the US flooded the entire small business sector with money.
The report notes it may have been necessary, but only because the US was not prepared with better system in place for a more targeted relief program.
For every job saved by PPP loans, the study found it cost taxpayers between $170,000 and $257,000.
According to the study, 2 to 3 million jobs were saved by the relief program.
