Wednesday, December 7, 2022

PPP loans prompt state-level employment growth

The Federal Reserve Bank of Cleveland determined in a new study brief this week that Paycheck Protection Program loans served to reduce the effects of the pandemic-related recession on state-level employment growth and had “substantial” advantages overall.

Researchers discovered that providing one additional week of payroll support through PPP loans during the first round of PPP lending “would have minimized the state-level employment decrease by roughly 1.5 percentage points to 2.3 percentage points.”

To read the full research brief, click here.