I am not commenting on whether or not they should have been. I am not interested in tying them back to discussion of any other loans or loan forgiveness.
Why call them loans if they are not?
In: Economics
Two reasons:
(1) First of all, running these payments as loans backed by the small business administration allowed the money to be distributed quickly. That was a mechanism that was in-place. Anything else would have taken many months to set up.
(2) Various economists and other officials were concerned that the massive and sudden implementation of lockdowns would mean that many people would lose their jobs, and this loss would have a huge impact on the economy. The PPP loans were intended to make sure that didn’t happen, so the forgiveness was tied to companies NOT laying people off. Not all of the loans were eventually forgiven.
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