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Small Business Lending and the Paycheck Protection Program

Author

Listed:
  • Jack Mueller
  • Mark M. Spiegel

Abstract

The Paycheck Protection Program (PPP) and the PPP Liquidity Facility were launched early in the pandemic to help many small businesses survive. These programs encouraged banks to lend more extensively to small businesses over the first half of 2020. Since then, however, banks have reduced their exposure to these loans, leaving no significant changes in small business lending associated with participation in these programs over the three-year period from 2020 through 2022. This raises some doubt that emergency lending programs encourage long-term relationships that outlast the programs.

Suggested Citation

  • Jack Mueller & Mark M. Spiegel, 2023. "Small Business Lending and the Paycheck Protection Program," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(10), pages 1-6, April.
    • Handle: RePEc:fip:fedfel:95947
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    References listed on IDEAS

    as
    1. Karakaplan, Mustafa U., 2021. "This time is really different: The multiplier effect of the Paycheck Protection Program (PPP) on small business bank loans," Journal of Banking & Finance, Elsevier, vol. 133(C).
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