How Well Did PPP Loans Reach Low- and Moderate-Income Communities?-Reference-Cited by-同舟云学术

How Well Did PPP Loans Reach Low- and Moderate-Income Communities?

Published:2021-05-27 Issue: Volume: Page:1-5
ISSN:2163-3738
Container-title:Economic Commentary (Federal Reserve Bank of Cleveland)
language:en
Short-container-title:EC (FRB Cleveland)

Author:

Borawski Garrett¹^ORCID,Schweitzer Mark¹^ORCID

Affiliation:

1. Federal Reserve Bank of Cleveland

Abstract

We investigate the degree to which Paycheck Protection Program (PPP) loans reached small businesses in low- and moderate-income (LMI) communities. We use PPP loan data from the Small Business Administration that we geocode and link to census tracts. We assess the program’s reach in a few ways and focus on the number of loans, rather than the amount of funds, that went to different areas in order to capture the program’s impact on businesses with fewer than 50 employees—the vast majority of small businesses. We find evidence that the program did have a broad reach within LMI communities, but that it reached higher-income communities to a greater extent and areas with Black, Hispanic, and American Indian or Alaska Native majorities to a lesser extent.

Publisher

Federal Reserve Bank of Cleveland

Reference6 articles.

1. Schweitzer, Mark E., and Garrett Borawski. 2021. “Which Industries Received PPP Loans? Federal Reserve Bank of Cleveland, Economic Commentary, 2021-08. https://doi.org/10.26509/frbc-ec-202108

2. Liu, Haoyang, and Desi Volker. 2020. “Where Have the Paycheck Protection Loans Gone So Far? Federal Reserve Bank of New York, Liberty Street Economics (May 6). https://libertystreeteconomics.newyorkfed.org/2020/05/where-have-the-paycheck-protection-loans-gone-so-far.html.

3. SBA, 2020. “SBA Achieves Historic Small Business Lending for Fiscal Year 2020.” US Small Business Administration, Press Release (October 28). https://www.sba.gov/article/2020/oct/28/sba-achieves-historic-small-business-lending-fiscal-year-2020.

4. SBA Inspector General. 2021. “Inspection of SBA’s Implementation of the Paycheck Protection Program.” US Small Business Administration, Inspector General. Report No. 21-07 (January 14). https://www.sba.gov/sites/default/files/2021-01/SBA%20OIG%20Report-21-07.pdf?utm_medium=email&utm_source=govdelivery.

5. SBCS. 2021a. “Small Business Credit Survey 2021, Report on Employer Firms.” Federal Reserve Banks of Atlanta, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, St. Louis, San Francisco. https://www.fedsmallbusiness.org/survey/2021/report-on-employer-firms.

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