PPP Update – August 3

Pelosi, Schumer, Meadows and Mnuchin now meeting in effort to close the wide gap between Democrats and Republicans for the fifth coronavirus aid bill. Keep in mind the PPP will shut down to new loans again on Saturday, 8/8, unless Congress passes an extension and POTUS signs it.

New work from Alex Bartik and co-authors at the National Bureau of Economic Research find that PPP loan receipt increased expected businesses survival rate by 14-30%. In various specifications they also find a positive but imprecise & uncertain effect on employment, of around +2-6 jobs per loan. See https://www.nber.org/papers/w27623

By Mark Friedlich, Esq., CPA.

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Mark Friedlich

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