The $257,000 Job: PPP Relief Measured Per Job Was Incredibly Expensive
The Paycheck Protection Plan, or PPP, was a hallmark achievement of leadership from Washington DC enjoyed by upwards of 83% of small businesses nationally. According to recent studies though unfortunately, the jobs actually saved as a result of the assistance were incredibly expensive … up to $257,000 per job expensive.
As is often the rule with government or large scale plans, the implementation causes the waste, excess, and problems. A little history… In the opening days of the C-19 crisis and lockdowns, all sides in Washington DC cooperated on the small business loan program that was supposed to go exclusively to employers who normally would qualify for Small Business Association (SBA) loans which more commonly or not are given out by local banks which underwrite the loans to SBA standards.
That program was known as PPP and became famous for the quick aid provided nearly universally in several rounds of loans that were and in almost all cases are being converted into grants.
The challenge came in during that process, federal agencies, including the Department of the Treasury and the SBA, used administrative processes that are built to max out when dealing with hundreds of thousands of businesses at once as opposed to tens of millions. In a pandemic.
And it is in this process, when the object was to make the PPP assistance at the speed of the emergency that the cost per job sailed into the stratosphere. Go here to read the details… Jobs Saved By PPP Cost Up To $257,000 each - LVRJ.