Information frictions and access to the Paycheck Protection Program.
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ABSTRACT:
SUBMITTER: Humphries JE
PROVIDER: S-EPMC7441872 | biostudies-literature | 2020 Oct
REPOSITORIES: biostudies-literature
Publications
Information frictions and access to the Paycheck Protection Program.
Humphries John Eric JE Neilson Christopher A CA Ulyssea Gabriel G
Journal of public economics 20200821
The Paycheck Protection Program (PPP) extended 669 billion dollars of forgivable loans in an unprecedented effort to support small businesses affected by the COVID-19 crisis. This paper provides evidence that information frictions and the "first-come, first-served" design of the PPP program skewed its resources towards larger firms and may have permanently reduced its effectiveness. Using new daily survey data on small businesses in the U.S., we show that the smallest businesses were less aware ...[more]
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