The number of American companies filing for bankruptcy has fallen by 43.1 percent since 2020, according to a July 22 report from MoneyTransfers.
The report indicates the number of companies filing for Chapter 11 protection in the first quarter of 2020 was 23,114. Those numbers shrank to 13,160 by the end of the first quarter of 2022, for a decrease of 43.1 percent
MoneyTransfers CEO Jonathan Merry said that the federal government's intervention helped cushion the pandemic's negative impact.
"The federal government unveiled the March 2020 CARES Act to protect businesses from the adverse effects of COVID-19. Likewise, it initiated the Paycheck Protection Program that helped many small businesses to stay afloat. These and the near-zero interest rates were pivotal in pushing the filings down," Mr. Merry said.