About 300 companies that received as much as half a billion dollars in pandemic-related government loans have filed for bankruptcy. Many of the companies, which employ a total of about 23,400 workers, say that the funds from the Paycheck Protection Program weren’t enough to keep them going as the coronavirus and lack of additional stimulus payments weighed on their businesses. The total number of companies that failed despite getting PPP loans is likely far higher. Many small businesses simply liquidate when they run out of cash rather than file for bankruptcy. The government awarded a total $525 billion in PPP loans to 5.2 million companies since April, according to the Small Business Administration. The SBA has only released data on the largest borrowers. The total amount lent to companies that went bankrupt is between $228 million and $509 million Dozens of recipients, which come from nearly every state, cited the pandemic as a primary reason for entering bankruptcy.
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