Government wrote off about $ 400 billion in PPP loans to aid coronavirus, federal observers say


WASHINGTON. The federal government has provided more than 4 million in loans to businesses worth $ 394.6 billion. Payroll protection program (PPP), according to new figures released by a group of domestic federal observers.

Over a million forgiven Covid relief loans were made to companies with only one employee, at a cost of $ 12.8 billion, or an average of about $ 11,497 per job, according to an analysis of data from NBC News.

The data was released Wednesday by the Pandemic Response Accountability Committee (PRAC), a committee of 22 inspectors general from various federal agencies that oversees all government spending on Covid assistance.

In total, according to the data, the Small Business Administration provided 11.7 million loans nationwide, totaling over $ 798 billion. The most recent batch of loans was sent on June 30th and there is currently no more money under the program.

According to recently released figures, the top franchisees to receive funding were General Motors, worth $ 1.4 billion. This was followed by the McDonald’s franchisees, which received $ 1.3 billion, and Subway stores, which received $ 672.9 million.

The vast majority of companies told the federal government that they used the money to pay wages – $ 776 billion of the $ 798 billion paid. As of June 30, businesses said PPP funding had saved them 90.3 million jobs.

On June 30, 2021, with Covid cases and unemployment declining and vaccines plentiful, the federal government channeled $ 33 million in PPP loans to 62 businesses that said they had a total of 4,469 employees.

Some of the biggest winners in this latest round of PPP loans were the four Planned Parenthood subsidiaries, which together raised $ 4.13 million.

Florida GOP Senator Marco Rubio and Kentucky Rand Paul objected to any further PPP funding directed to Planned Parenthood during a hearing in late May. The Trump administration has tried to withdraw funding from Planned Parenthood affiliates, which were granted $ 80 million in loans last year.

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