U.S. | Analyzing the Effect of PPP Loan Issuances to Regional Economies

This brief analyzes the impact of the 2020 CARES Act’s Paycheck Protection Program on short and long term regional labor markets and compares these results to the government consensus and the effects of concurrent Covid-19 recovery programs.

Key points

• Key points:
• We estimate that half a trillion dollars in PPP loans saved 3.64 million jobs
• For every 1% of payrolls covered by PPP loans, MSAs prevented a 0.83% decrease in nonfarm payroll
• We find that the program disproportionately benefited small counties, but provided no clear benefit across industries

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