Policymakers are tapping PPP loan lessons for future-fit insights into keeping Main Street businesses healthy.
Researchers say that analyzing the legacy and impact of the U.S. government’s extraordinary $800 billion Paycheck Protection Program (PPP) loan initiative, an emergency response to the COVID-19 pandemic, can help inform future efforts to assist otherwise healthy small and vulnerable businesses during times of dramatic and damaging economic upheaval.
With Main Street increasingly bracing for a recession, now is the time to understand how successful the PPP loans were in preserving jobs and keeping small businesses afloat in the face of rising liquidity constraints and historic macroeconomic headwinds.
PPP loans significantly improved their recipients’ financial condition. On average, companies receiving loans reduced their credit risk by nearly one-fifth (18%)…