quick payday loans
Whom you see things, regardless if making an application for PPP funds
A new study finds out favoritism among forgivable bodies financing: A business that have an earlier credit connection with bank grows likelihood of having PPP fund from the 57%
Regarding disorderly early days of your own COVID-19 pandemic, this new Income Defense Program (PPP) is actually an effective lifeline for the majority struggling companies. They offered bodies-secured, forgivable loans to enterprises with less than 500 staff to help you cover payroll, resources, home loan and you may rent costs.
There clearly was an upset dashboard to your very first round out of PPP money, and also the $349 million finance is actually exhausted in less than 14 days. Of a lot small enterprises was basically shut out when you find yourself big businesses and companies received many during the forgivable fund.
Today, a new study conducted because of the scientists at the Washington College within the St. Louis, Boston College plus the University out of Geneva is actually introducing just how – with little to no oversight otherwise accountability – loan providers prioritized PPP loan applications regarding businesses which have past financing matchmaking or individual involvement with lender professionals during the early amount out-of the applying. (more…)