Racial Protests and Credit Access

Raffi E. Garcia and Alberto Ortega

No 32477, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Recent local racial protests and the subsequent national racial justice movement following George Floyd’s death heightened awareness of racial disparities in the US. Analyzing Paycheck Protection Program loans using difference-in-differences and event-study methodologies, we find that local racial protests improve credit access for Black business owners. The increased social media and public attention following George Floyd’s death also positively influenced public perceptions of racial equity, leading to relatively larger loan amounts for Black business owners compared to other racial-ethnic groups. We find implicit and explicit racial biases, including within the finance sector, decreased after Floyd’s death, driving these effects.

JEL-codes: G20 G28 G40 J15 J7 L26 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-ban, nep-ent, nep-lab and nep-ure
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