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
There was criteria built in from the start for them to be forgiven.
The world was crazy in 2020, and a lot of stuff wasn’t very efficient. Part of the design of the program was that businesses would apply for PPP loans through their banks. Banks often had close-ish relationships with businesses- they could tell if a business was regularly sending money for payroll, getting deposits in for sales, etc. The thought in 2020 was that banks would be super efficient at getting businesses money so they didn’t fail, and money you apply for through a bank is often referred to as a “loan”.
Over time- eligibility got less strict, and a lot of people who didn’t really have small businesses defrauded the PPP program and got “loans”, but stuff happens.
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