The U.S. Small Business Administration (SBA) has released a report detailing the effects of its pandemic relief programs, including the Paycheck Protection Program (PPP), COVID Economic Injury Disaster Loans (EIDL), the American Rescue Plan’s Restaurant Revitalization Fund (RRF), and the Shuttered Venue Operators Grant (SVOG).
Administrator Isabel Casillas Guzman stated, "As the country experienced an unprecedented global pandemic, the SBA continued scaling to deliver aid to save millions of small businesses and strengthen their resilience through the Biden-Harris Administration’s historic Investments in America, which heralded in the strongest economic recovery of any nation and fueled an unprecedented small business boom." She emphasized that "the survival of small businesses and record-breaking 21 million new business applications over the past four years is a reflection of entrepreneurs’ innovation and resilience, as well as the Biden-Harris Administration’s commitment to leveling the playing field and generating opportunities for small businesses nationwide."
The report indicates that participation in these relief programs was linked to reduced job losses and business closures. The study highlighted that early 2021 actions by the Biden-Harris Administration ensured equitable access to these programs, significantly increasing participation among smaller and younger businesses. This effort helped preserve 48 million jobs at smaller businesses with one to nineteen staff members.
Among other findings, young businesses receiving early PPP loans saw a 46% lower closure rate in 2022 compared to non-recipients. Smaller businesses with early loans had notably low closure rates. In 2021, policy changes led ten times more smaller businesses receiving loans compared to mid-size ones.
In terms of COVID EIDLs, $155 billion was distributed among 820,000 small businesses. Young enterprises participated at higher rates than older ones, with a notable decrease in closure rates for those receiving loans.
The RRF provided $28.6 billion to over 100,000 restaurants and food service entities. Nearly two-thirds of these funds went to women-owned, veteran-owned, or economically disadvantaged individuals' businesses.
Finally, SVOG allocated $14 billion across more than 13,000 eligible venues and operators within live performance sectors. These recipients experienced lower closure rates than those who did not receive funding.