New research discovers favoritism certainly one of forgivable regulators fund: A business with a previous credit connection with financial develops chances of having PPP fund of the 57%
In the disorderly early days of your COVID-19 pandemic, the new Salary Safeguards System (PPP) try a lifeline for many battling businesses. It considering bodies-protected, forgivable loans from banks so you’re able to companies which have less than five hundred teams to shelter payroll, resources, home loan and you will rent costs.
There was an angry dash to the earliest round of PPP loans, while the $349 mil money was depleted in less than 14 days. Of a lot small businesses was in fact shut out when you’re huge companies and companies received millions inside the forgivable funds.