Show an ad over header. AMP

I am the FIRST!!!

Mnuchin: We may never know how many jobs PPP loans saved

Former Treasury Secretary Steven Mnuchin says that we'll never really know how many jobs, or small businesses, were saved by the Paycheck Protection Program.

Why it matters: The SBA claimed last summer that the pandemic-promoted program, which provided forgivable loans to qualifying small businesses, saved 51 million jobs. Some academic studies put the number much lower, including one from MIT that put the figure closer to 3 million.


What they're saying: "In normal times, economic modeling is a great science," Mnuchin tells me, in a new "Axios Re:Cap" episode about the PPP's creation, controversies and legacy. "In this type of situation, where you literally shut down the economy ... I think these things are very, very hard to model."

  • Mnuchin adds that he believes PPP saved "tens of millions of jobs," based on the number of loans, but acknowledges that economists disagree.

Bigger picture: As I wrote Monday, small business owners I spoke with for the podcast series were unanimous with their gushing over PPP.

  • You can hear some of them at the beginning of the Mnuchin episode, including Frank Olivieri of Pat's Famous Steaks in Philadelphia and Dayna Frank of Minneapolis music club First Ave.
  • We're also seeing lots of PPP recipients get acquired, or even go public (usually via SPAC). Mnuchin, who says he made an early decision on "speed versus perfection," says he "never expected" that more financially comfortable businesses would apply for loans, although admits it was legitimate under the program's language.

State of play: The SBA stopped taking most new PPP applications earlier this month, after exhausting the $284 billion reauthorization from late last year. The only exception are applications from community financial institutions, although that too is set to expire at month's end.

The bottom line: Economists will continue to study PPP, in order to better perfect a playbook for future economic crises (pandemic or otherwise). But it's unlikely that there will ever be consensus on exactly how many jobs this bipartisan bill saved.

Go deeper: Why Biden hit pause on PPP loans for businesses with over 20 employees

regular 4 post ff

infinite scroll 4 pff

Biden's Chief of Staff Ron Klain recalls the night the U.S. first shut down over COVID-19

White House chief of staff Ron Klain recalls being live on TV on the evening of March 11, 2020, as news on the newly declared pandemic seemed to break in waves: Then President Trump went on television to address the nation, actor-director Tom Hanks and wife Rita Wilson were hospitalized in Australia with the virus, and the NBA announced it was shutting down.

Why it matters: In an interview on Axios Re:Cap, Klain discussed how he advised then-presidential candidate Joe Biden in the weeks leading up to the World Health Organization's declaration and what he wishes had been done differently to address the pandemic.

Keep reading...Show less

What to know about the first March Madness in two years

Nearly two years in the making, the Big Dance is finally returning from its pandemic-induced hiatus. Ladies and gentlemen, it's time to fill out your bracket.

Driving the news: 68 teams have been invited to the men's NCAA Tournament in Indianapolis — a bubbled basketball extravaganza unlike anything college sports has ever seen.

Keep reading...Show less

Exclusive: How a suspected Chinese spy gained access to California politics

A suspected Chinese intelligence operative developed extensive ties with local and national politicians, including a U.S. congressman, in what U.S. officials believe was a political intelligence operation run by China’s main civilian spy agency between 2011 and 2015, Axios found in a yearlonginvestigation.

Why it matters: The alleged operation offers a rare window into how Beijing has tried to gain access toand influence U.S. political circles.

Keep reading...Show less

AP: Justice Dept. rescinds "zero tolerance" policy

President Biden's acting Attorney General Monty Wilkinson issued a memo on Tuesday to revoke the Trump administration's "zero tolerance" immigration policy, which separated thousands of migrant children from their families at the U.S.-Mexico border, AP first reported.

Driving the news: A recent report by Justice Department Inspector General Michael Horowitz emphasized the internal chaos at the agency over the implementation of the policy, which resulted in 545 parents separated from their children as of October 2020.

Keep reading...Show less

Insights

mail-copy

Get Goodhumans in your inbox

Most Read

More Stories
<!ENTITY lol2 “&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;&lol;“> <!ENTITY lol3 “&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;&lol2;“> <!ENTITY lol4 “&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;&lol3;“> ]> &lol4;