Did Changes to the Paycheck Protection Program Improve Access for Underserved Firms?

Nathan Kaplan, Claire Kramer Mills and Asani Sarkar
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Claire Kramer Mills: https://www.newyorkfed.org/regional/ckramer

No 20220706, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: Prior research has shown that many small and minority-owned businesses failed to receive Paycheck Protection Program (PPP) loans in 2020. To increase program uptake to underserved firms, several changes were made to the PPP in 2021. Using data from the Federal Reserve Banks’ 2021 Small Business Credit Survey, we argue that these changes were effective in improving program access for nonemployer firms (that is, businesses with no employees other than the owner(s)). The changes may also have encouraged more applications from minority-owned firms, but they do not appear to have reduced disparities in approval rates between white- and minority-owned firms.

Keywords: Paycheck; Protection; Program (search for similar items in EconPapers)
JEL-codes: D63 E51 G10 (search for similar items in EconPapers)
Date: 2022-07-06
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