January 2021

Ten Days Leisurely and Billions of Greenbacks Rapid: The Employment Outcomes of Delays in Paycheck Protection Program Financing

Cynthia L. Doniger and Benjamin Kay

Abstract:

Lengthen sms lån på minuttetin the provision of Paycheck Protection Program (PPP) loans attributable to insufficient initial funding below the CARES Act substantially and time and all over again decreased employment. Delayed loans increased job losses in Would possibly well moreover merely and time and all over again decreased recalls for the duration of the summer. The magnitude and heterogeneity of results counsel fundamental boundaries to acquiring exterior financing, significantly amongst tiny companies. Outcomes are inequitably allotted: increased amongst the self-employed, less properly paid, less properly educated and–importantly for the comprise of future applications–in very tiny companies. Our estimates imply the PPP saved hundreds and hundreds of jobs but increased initial funding may presumably per chance need saved hundreds and hundreds more, significantly if it had been directed toward the smallest companies. About half of of the jobs lost to insufficient PPP funding are lost in companies sms lån på minuttet fewer than 10 employees, irrespective of such companies accounting for decrease than 20 p.c of employment.

Key phrases: Paycheck Protection Program, CARES Act, Countercyclical Fiscal Policy, Covid-19, Kurzarbeit, Earnings Toughen, Puny Enterprise Lending, Puny and sms lån på minuttetium Enterprises (SMEs), Financial Frictions

DOI: https://doi.org/10.17016/FEDS.2021.003

PDF:
Elephantine Paper

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Final Replace:
January 15, 2021

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