Day: June 18, 2020

Government loans helped save millions of jobs, but the money is running out for many

Server Conor Susi, center, takes orders from a dine-in group at Faith & Flower in downtown Los Angeles on June 6. <span class="copyright">(Kent Nishimura / Los Angeles Times)</span>
Server Conor Susi, center, takes orders from a dine-in group at Faith & Flower in downtown Los Angeles on June 6. (Kent Nishimura / Los Angeles Times)

The surprising jobs rebound in May, which fueled hopes for a fast recovery from the pandemic recession, was almost certainly due in large part to tens of billions of dollars of forgivable government loans to small businesses.

Known as the Paycheck Protection Program, the initiative — part of the much larger COVID-19 relief package enacted by Congress when the pandemic first began pounding the economy — has to date lent more than $512 billion to struggling small businesses, including about $67 billion in California. The money does not need to be repaid if funds are used to keep workers on the payroll and other conditions are met.

The novel idea to discourage layoffs has no precedent in past economic crises.

And

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