Discrimination in Lending? Evidence from the Paycheck Protection Program
| Autor: | Rachel Atkins, Robert Seamans, Lisa D. Cook |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
History
Government Labour economics Polymers and Plastics Coronavirus disease 2019 (COVID-19) media_common.quotation_subject Racism Industrial and Manufacturing Engineering Paycheck Competition (economics) Payroll Business Program Design Language Business and International Management Historical record media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| Popis: | We assess the role of race in loans made through the Paycheck Protection Program (PPP). The PPP program, created by the U.S. government as a response to the Covid-19 pandemic, provides loans to small businesses so they can keep employees on their payroll. We argue that the historical record and PPP program design choices made it likely that many Black-owned businesses received smaller PPP loans than White-owned businesses. Using newly released data on the PPP program, we find that Black-owned businesses received loans that were approximately 50 percent lower than observationally similar White-owned businesses. The effect is marginally smaller in areas with more bank competition and disappeared over time as changes to the PPP program were implemented allowing for entry by fintechs and other non-traditional lenders. |
| Databáze: | OpenAIRE |
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