The 2021 Paycheck Protection Program Reboot: Loan Disbursement to Employer and Nonemployer Businesses in Minority Communities

Robert Fairlie and Frank Fossen

AEA Papers and Proceedings, 2022, vol. 112, 287-91

Abstract: We analyze how Paycheck Protection Program (PPP) funds were disbursed to minority communities in the $278 billion rebooted program in January 2021. Using administrative microdata covering all PPP loans, we find strong positive relationships between PPP loan flows to both employer and nonemployer businesses and the minority share of the population. In contrast, the relationships were negative in the 2020 first round and less positive in the 2020 second round. For employer businesses, the positive relationship was also stronger for first-draw loans than for second-draw loans. The PPP reboot appears to have been disbursed to minority communities as intended.

JEL-codes: D22 E32 E63 J15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Working Paper: The 2021 Paycheck Protection Program Reboot: Loan Disbursement to Employer and Nonemployer Businesses in Minority Communities (2022)
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DOI: 10.1257/pandp.20221028

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