Delaware's economy received a substantial boost from the Small Business Administration's Paycheck Protection Program. Over 39% of Delaware’s businesses and nonprofits applied for the PPP loans. This impacted one-third of Delaware’s jobs.
The Paycheck Protection Program (PPP) was a counter-cycle success in Delaware and a very worthwhile use of public funds.
The PPP was enacted nationwide to counteract the impact of COVID on businesses and nonprofits. The PPP was a loan designed to provide a direct incentive for businesses and nonprofits to keep their workers on the payroll. The program terminated on August 8, 2020.
The terms of the PPP loans were generous. The interest rate was 1%, with a maturity of two to five years. Loan payment deferrals could be applied for, together with loan forgiveness. No collateral or personal guarantees were required, and no fees were charged by the government or the lenders.
Data from the Small Business Administration shows that Delaware participated fully in the PPP.
Over the course of the PPP, Delaware businesses and nonprofits applied for 13,205 loans impacting 141,391 jobs.
Of the loans, 84% were for less than $150,000 and impacted almost 50,163 jobs.
The 16% of the loans of $150,000 or more ranged as high as $5-$10 million and involved over 2,000 borrowers, and impacted over 91,200 jobs.
One-third of the PPP loans in Delaware went to business with less than five employees, the vast majority of whom were sole proprietors.
There were 15 loans ranging from $5-$10 million and 234 loans ranging from $1-$4.9 million.
Loans of $1 million or more protected more than 33,800 jobs.
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