全球智库信息集成服务系统(G2TT): DP16623 Racial Disparities in Access to Small Business Credit: Evidence from the Paycheck Protection Program

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16623
	DP16623 Racial Disparities in Access to Small Business Credit: Evidence from the Paycheck Protection Program
	Sabrina Howell; Theresa Kuchler; David Snitkof; Johannes Ströbel
发表日期	2021-10-08
出版年	2021
语种	英语
摘要	We explore the sources of racial disparities in small business lending by studying the $806 billion Paycheck Protection Program (PPP), which was designed to support small business jobs during the COVID-19 pandemic. PPP loans were administered by private lenders but federally guaranteed, largely eliminating unobservable credit risk as a factor in explaining differential lending by race. We document that even after controlling for a firm's zip code, industry, loan size, PPP approval date, and other characteristics, Black-owned businesses were 12.1 percentage points (70% of the mean) more likely to obtain their PPP loan from a fintech lender than a traditional bank. Among conventional lenders, smaller banks were much less likely to lend to Black-owned firms, while the Top-4 banks exhibited little to no disparity after including controls. We use novel data to show that the disparity is not primarily explained by differences in pre-existing bank or credit relationships, firm financial positions, fintech affinity, or borrower application behavior. In contrast, we document that Black-owned businesses' higher rate of borrowing from fintechs compared to smaller banks is particularly large in places with high racial animus, pointing to a potential role for discrimination in explaining some of the racial disparities in small business lending. We find evidence that when small banks automate their lending processes, and thus reduce human involvement in the loan origination process, their rate of PPP lending to Black-owned businesses increases, with larger effects in places with more racial animus.
主题	Financial Economics ; Public Economics
关键词	Ppp Fintech Discrimination
URL	https://cepr.org/publications/dp16623
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545567
推荐引用方式 GB/T 7714	Sabrina Howell,Theresa Kuchler,David Snitkof,et al. DP16623 Racial Disparities in Access to Small Business Credit: Evidence from the Paycheck Protection Program. 2021.