Small business lending under the PPP and PPPLF programs
Journal of Financial Intermediation
; 53, 2023.
Article
in English
| Scopus | ID: covidwho-2242850
ABSTRACT
We use Call Report data to examine the effects of the Paycheck Protection Program (PPP) and the PPP Liquidity Facility (PPPLF) on small business and farm lending by individual commercial banks. As program participation was associated with small business lending, we adopt an instrumental variables approach to identify causal implications based on historical bank relationships with the Small Business Administration and the Federal Reserve's discount window. Our results indicate that both programs encouraged lending growth over the first half of 2020. However, while the PPP encouraged greater lending across all banks, only small and medium-sized bank lending growth was significantly related to participation in the PPPLF. © 2022
Full text:
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Collection:
Databases of international organizations
Database:
Scopus
Language:
English
Journal:
Journal of Financial Intermediation
Year:
2023
Document Type:
Article
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