COVID-19 wreaked havoc on small businesses, with many left wondering how to remain afloat last year. In an effort to support small businesses last April, the U.S. Small Business Administration (SBA) in consultation with the U.S. Treasury Department opened the first round of the Paycheck Protection Program (PPP).

The PPP loans were offered by SBA-approved PPP lenders to incentivize businesses to keep workforces employed throughout the pandemic. Per the CARES Act of 2020 passed by Congress, PPP loans could be forgiven having met certain qualifications pertaining to how funds are used.

• During the first round of PPP, 87 percent of the PPP loan recipients received $150,000 or less, which supported hundreds of thousands of small businesses
• California accounted for 30 percent of PPP applications, but only received only about 12 percent of loans granted
• Real estate and construction businesses made up the largest percentage of PPP applicants
• 35 percent of applicants did not have good credit

Unfortunately, the PPP expired in August 2020, leaving many of those businesses still struggling, according to Lantern Credit, a SoFi company. However, Congress recently passed the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which includes up to $659 billion in PPP loans to continue supporting small businesses through funds aimed at workforce retention.