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Eligible businesses received an average of $72,100 in PPP loan forgiveness, according to the latest government data.
PPP loans, or Paycheck Protection Program loans, were offered through a COVID-19 relief program to small businesses to keep their workforce and continue paying employees.
Forgiveness applications were submitted for 93% of all PPP loans, resulting in 96% of the total value of the loans being forgiven.
In June 2021, an average of $95,700 of PPP were forgiven, decreasing to $72,500 in July of 2022 and $72,100 by October 2022.
Congress authorized this under the CARES Act, which was signed into law in March 2020. In contrast, President Joe Biden attempted to forgive student loan debt without congressional approval using the HEROES Act, which gives the Secretary of Education the authority to “waive or modify” provisions related to student-loan programs in a national emergency. The Supreme Court recently ruled the effort unconstitutional in a 6-3 vote.
This fact brief is responsive to conversations such as this one.
- Pandemic Oversight Update: 10.5 million PPP loans were forgiven. Here’s why.
- U.S. Small Business Administration About PPP Loans
- Congress.gov H.R.748 – CARES Act| Sec. 1106. Loan forgiveness
- Supreme Court of the United States Biden v. Nebraska