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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Information Frictions And Access To The Paycheck Protection Program, John Eric Humphries, Christopher Neilson, Gabriel Ulyssea
Information Frictions And Access To The Paycheck Protection Program, John Eric Humphries, Christopher Neilson, Gabriel Ulyssea
Cowles Foundation Discussion Papers
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 of the PPP and less likely to apply. If they did apply, the smallest businesses applied later, faced longer processing times, and were less likely to …
The Evolving Impacts Of Covid-19 On Small Businesses Since The Cares Act, John Eric Humphries, Christopher Neilson, Gabriel Ulyssea
The Evolving Impacts Of Covid-19 On Small Businesses Since The Cares Act, John Eric Humphries, Christopher Neilson, Gabriel Ulyssea
Cowles Foundation Discussion Papers
This note provides new evidence on how small business owners have been impacted by COVID-19, and how these effects have evolved since the passage of the CARES Act. As part of a broader and ongoing project, we collected survey data from more than 8,000 small business owners in the U.S. from March 28th, one day after the CARES Act was passed, through April 20th. The data include information on firm size, layoffs, beliefs about the future prospects of their businesses, as well as awareness of existing government relief programs. We provide three main findings. First, by the time the CARES …