Racial disparities in the Paycheck Protection Program

• 成果类型: Article
• 署名作者: Chernenko, Sergey; Scharfstein, David
• 署名单位: Purdue University System; Purdue University; Harvard University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103911
• 发表日期: 2024
• 关键词: discrimination; Paycheck protection program; Economic Injury Disaster Loans; Bank lending; Nonbank lending

摘要

Consistent with contemporaneous research, we document that minority-owned firms were more likely than observationally similar white-owned firms to receive PPP loans from nonbank lenders than from banks. However, we show that this substitution to nonbanks was only partial, resulting in significantly lower PPP take-up by minority-owned firms, particularly Black-owned ones. Location and firm characteristics explain about two-thirds of the 25 percentage point disparity in PPP take-up by Black-owned firms. While there was greater substitution to nonbanks in more racially biased locations, overall take-up was still lower in those locations. Access to professional help with applications facilitated use of nonbanks and mitigated disparities.