Where Have the Paycheck Protection Loans Gone So Far?

Haoyang Liu () and Desi Volker
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Desi Volker: https://www.newyorkfed.org/research/economists/volker

No 20200506, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The Paycheck Protection Program (PPP) is a central piece of the CARES Act. In the program’s first round, $349 billion in forgivable government-guaranteed loans were extended to small businesses to cover costs related to payroll and utilities, as well as mortgage and rent payments. The program opened for applications on April 3 and was oversubscribed by April 16. Because of its popularity, lawmakers passed a new bill replenishing the fund with another $310 billion and the Small Business Administration (SBA) started approving loans again on April 27. With a new round of PPP lending underway, it is natural to examine the allocation of credit in the first round and ask: Have PPP loans gone to the areas of the country and sectors of the economy hardest hit by COVID-19?

Keywords: Paycheck Protection Program; CARES Act; small business loans; COVID-19 (search for similar items in EconPapers)
JEL-codes: E51 (search for similar items in EconPapers)
Date: 2020-05-06
New Economics Papers: this item is included in nep-mac
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