COVID Response: The Paycheck Protection Program Liquidity Facility

Desi Volker
Additional contact information
Desi Volker: https://www.newyorkfed.org/research/economists/volker

No 978, Staff Reports from Federal Reserve Bank of New York

Abstract: To bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP), the Federal Reserve, with the backing of the Secretary of the Treasury, established the Paycheck Protection Program Liquidity Facility (PPPLF). The facility was intended to supply liquidity to financial institutions participating in the PPP and thereby provide relief to small businesses and help them maintain payroll. In this article, we lay out the background and rationale for the creation of the facility, cover the salient features of the PPP and the PPPLF, and analyze the facility’s loan take-up. Our findings suggest that the PPPLF played an important role in expanding the supply of credit to smaller banks and nondepository institutions and that these institutions were more likely to originate PPP loans to businesses on the smaller end of the scale.

Keywords: PPP; PPPLF; Small Business Administration; CARES Act; Federal Reserve lending facilities (search for similar items in EconPapers)
JEL-codes: G0 G2 G21 G23 G28 (search for similar items in EconPapers)
Pages: 25
Date: 2021-09-01
New Economics Papers: this item is included in nep-ban and nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr978.pdf Full text (application/pdf)
https://www.newyorkfed.org/research/staff_reports/sr978.html Summary (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednsr:93070

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Staff Reports from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().