The Paycheck Protection Program (PPP) offered forgivable loans to businesses to retain their workforce and cover specific operational expenses during economic hardship. A core component of the program was incentivizing businesses to maintain their staffing levels and even expand by offering loan forgiveness tied directly to payroll expenses, including those associated with bringing new team members on board. For example, a business could use PPP funds to pay the salaries of newly hired individuals and, by meeting certain criteria, have that portion of the loan forgiven.
Maintaining and expanding employment during periods of economic downturn is crucial for overall economic stability. By enabling businesses to bring on new talent, the PPP aimed to mitigate widespread job losses and help accelerate economic recovery. This support proved especially vital for small and medium-sized enterprises (SMEs), which are significant job creators. The program aimed to lessen the severity of economic downturns by ensuring businesses had the resources to continue operations and, importantly, keep individuals employed.