Is the PPPLF Still Encouraging Small Business Lending?

Lora Dufresne and Mark Spiegel

FRBSF Economic Letter, 2026, vol. 2026, issue 04, 5

Abstract: The Federal Reserve designed its Paycheck Protection Program Liquidity Facility to ease liquidity issues and support small business lending during the pandemic. The liquidity facility allowed banks to pledge Paycheck Protection Program loans as risk-free collateral during the beginning of the COVID-19 pandemic. Analysis shows that, although the program has essentially ended, the positive effects on small business lending have persisted, particularly among small banks with lower liquidity, in keeping with the intent of the program.

Keywords: PPPLF; small businesses; small business lending (SBL) (search for similar items in EconPapers)
Date: 2026
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