Small businesses and government assistance during Covid-19

Evidence from the paycheck protection program in the U.S

Datos Bibliográficos

ID7761169
AutoresQingfang Wang (0000-0002-7285-4027, School of Public Policy, University of California Riverside, Riverside, CA, USA, autor de correspondencia), Woosung Kang (0000-0002-1073-7781, University of North Texas), Wei Kang (0009-0001-6401-1441)
Año2023
Volumen55
Número8
Páginas2147-2165
Fecha de publicación2023-11-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEnvironment and Planning A Economy and Space (JOURNAL)
Identificadores de la revistaISSN: 0308-518X • E-ISSN: 1472-3409
EditorialSAGE Publications (PUBLISHER • US)
DOI10.1177/0308518x231166407
OpenAlexW4362590155
IdiomaEN
Citas recibidas2
Referencias citadas37

The COVID-19 pandemic has caused unprecedented losses for small businesses in cities across the globe. Policymakers have relied on a wide range of measures to support firms and sustain business continuity. However, significant concerns have been expressed about the degree of equity in the distribution and efficiency of government assistance during the pandemic disruption. Drawing on the case of the Paycheck Protection Program (PPP) and its implementation in inland Southern California, this study examines the spatial distribution of PPP loans at the neighborhood level. Based on spatial regressions and in-depth interviews with small businesses, banks, government agencies, and nonprofit organizations, the study finds that, in terms of their total number and value, the PPP loans have roughly succeeded in reaching their small business targets. However, communities with higher shares of pandemic-vulnerable businesses or higher levels of socioeconomic vulnerability are less likely to have received PPP loans. There have also been spatial spillover effects of community vulnerability when it comes to receiving PPP loans at the neighborhood level. The correlation between fewer PPP loans and community vulnerability also reflects both short-term needs and longstanding challenges facing entrepreneurship and business development in socioeconomically disadvantaged communities. Moreover, small business resilience and community resilience are inseparable, and thus government business assistance must be considered in the context of local communities

Business · Disadvantaged · Economic growth · Economics · Entrepreneurship · Psychological resilience · Small business · COVID-19 Pandemic Impacts · Microfinance and Financial Inclusion · Urban and Rural Development Challenges · Finance