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      Did the Paycheck Protection Program and Economic Injury Disaster Loan Program get disbursed to minority communities in the early stages of COVID-19?

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          Abstract

          Social distancing restrictions and health- and economic-driven demand shifts from COVID-19 shut down many small businesses with especially negative impacts on minority owners. Is there evidence that the unprecedented federal government response to help small businesses—the Paycheck Protection Program (PPP) and the related COVID-19 Economic Injury Disaster Loans (EIDL)—which had a stated goal of helping disadvantaged groups, was disbursed evenly to minority communities? In this descriptive research note, we provide the first detailed analysis of how the 2020 PPP and EIDL funds were disbursed across minority communities in the country. From our analysis of data on the universe of loans from these programs and administrative data on employer firms, we generally find a slightly positive relationship between PPP loan receipt per business and the minority share of the population or businesses, although funds flowed to minority communities later than to communities with lower minority shares. PPP loan amounts per employee, however, are negatively related to the minority share of the population. The EIDL program, in contrast, both in numbers per business and amounts per employee, was distributed positively to minority communities.

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          The Wealth Dynamics of Entrepreneurship for Black and White Families in the U.S.

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            Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012

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              COVID-19, THE CARES ACT, AND FAMILIES’ FINANCIAL SECURITY

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                Author and article information

                Contributors
                rfairlie@ucsc.edu
                ffossen@unr.edu
                Journal
                Small Bus Econ
                Small Business Economics
                Springer US (New York )
                0921-898X
                1573-0913
                5 May 2021
                5 May 2021
                : 1-14
                Affiliations
                [1 ]GRID grid.205975.c, ISNI 0000 0001 0740 6917, Department of Economics, , University of California, ; Santa Cruz, CA USA
                [2 ]GRID grid.168010.e, ISNI 0000000419368956, Stanford University, ; Stanford, CA USA
                [3 ]GRID grid.250279.b, ISNI 0000 0001 0940 3170, NBER, ; Cambridge, MA USA
                [4 ]GRID grid.266818.3, ISNI 0000 0004 1936 914X, Department of Economics, , University of Nevada, ; Reno, NV USA
                Article
                501
                10.1007/s11187-021-00501-9
                8097108
                c913c080-0867-4551-997b-4193d0dd0424
                © The Author(s) 2021

                Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.

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