PPP
Abbreviation with 3 meanings
| Stands for | Paycheck Protection Program |
|---|---|
| Meanings | 3 |
| Categories | Government & Politics, Business & Finance |
PPP has three meanings. The most common are Paycheck Protection Program (public program) and Public-private partnership (economics); it can also stand for Purchasing power parity.
Meanings of PPP at a glance
| # | PPP stands for | Context |
|---|---|---|
| 1 | Paycheck Protection Program | Government & Politics › Public Program |
| 2 | Public-private partnership | Business & Finance › Economics |
| 3 | Purchasing power parity | Business & Finance › Economics |
1. Paycheck Protection Program
Government & Politics · Public Program Abbreviations
Pandemic relief program created by the CARES Act in 2020 that gave small businesses SBA-guaranteed loans, made through banks, which were forgiven if most of the money went to payroll. About $800 billion was lent before it closed in May 2021.
Example: The restaurant used its PPP loan to keep its staff on the payroll during the shutdown.
More than 11 million loans were approved, many forgiven entirely. Speed was prioritized over verification, and the program became one of the largest sources of fraud in US history, leading to thousands of prosecutions. Public loan data let journalists identify recipients, including large companies that later returned money.
2. Public-private partnership
Business & Finance · Economics Abbreviations
Long-term contract between a government and a private company to finance, build and often operate public infrastructure or services, such as toll roads, hospitals, schools or water plants, with risks and rewards shared. The private partner is repaid through user fees or government payments.
Example: The new airport terminal is being delivered as a PPP, with the consortium operating it for 30 years.
PPPs are widely used in the UK, Canada, Australia, India and many developing countries; the UK's Private Finance Initiative (PFI) was a well-known model that the government stopped using for new projects in 2018. Critics argue PPPs can hide public debt and cost more over time. Variants include build-operate-transfer (BOT) contracts.
3. Purchasing power parity
Business & Finance · Economics Abbreviations
Exchange rate at which two currencies would buy the same basket of goods and services, used to compare living standards and economic size across countries without distortion from market exchange rates. The theory also predicts that exchange rates move toward PPP over the long run.
Example: Measured at PPP, China's economy is larger than that of the United States.
The International Comparison Program, coordinated by the World Bank, collects prices worldwide to calculate PPP rates. The Economist's Big Mac Index, launched in 1986, is a lighthearted test of the theory. PPP adjustments raise the measured size of developing economies because services there tend to be cheaper. In public policy, PPP more often means public-private partnership.
Related abbreviations
More public program abbreviations
- OASDI – Old-Age, Survivors, and Disability Insurance
- OEP – Open enrollment period
- OPT – Optional Practical Training
- PHA – Public housing agency
- PSLF – Public Service Loan Forgiveness
- PUA – Pandemic Unemployment Assistance
- PWA – Public Works Administration
- REA – Rural Electrification Administration
See all 65 public program abbreviations →