Feb. 2, 2021— Economists are questioning how effective the Paycheck Protection Program has been to help small businesses weather the pandemic, The New York Times reported.
“A very large chunk of the benefit went to a very small share of the firms, and those were probably the firms least in need,” David Autor, an M.I.T. economist who led one study, told the publication.
While Department of Treasury economists said the program might have saved nearly 19 million jobs, many researchers, including Autor, believe the number is much less, roughly saving 1.4 to 3.2 million jobs.
The debate over the program’s merits could shape the next round of aid. President Biden’s $1.9 trillion pandemic relief plan includes billions for small businesses, but no new money for the program. Many democrats, along with some advocates for small-business relief say lawmakers should move to a more focused and efficient method for supporting small businesses, according to the report.