Yale School of Management

Posts by SME

As Need for Additional Small Business Aid Intensifies, Preliminary Evaluations of the PPP Suggest It Improved Business Survival

October 21, 2020
A central component of the initial fiscal response to the Covid-19 pandemic, the Paycheck Protection Program (PPP) was designed to support small businesses in the United States. It launched on April 3 after Congress signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27, initially allocating $349 billion for the forgivable loan program. Congress later increased funding by $310 billion, bringing total funding to $659 billion. When the PPP closed for applications on August 8, it had provided $525 billion in support through more than 5.2 million loans.  Continue reading “As Need for Additional Small Business Aid Intensifies, Preliminary Evaluations of the PPP Suggest It Improved Business Survival”

Paycheck Protection Program Loan Forgiveness Rules Eased for Smallest Borrowers

October 13, 2020
YPFS
On October 8, the Small Business Administration (SBA) and Treasury released an interim final rule easing the process for loan forgiveness on Paycheck Protection Program (PPP) loans of $50,000 or less. The new rule exempts small businesses with such loans from reductions in loan forgiveness if they have cut wages or laid off employees. The previous rule required PPP borrowers to maintain employment and wages at pre-COVID levels in order to be fully eligible for loan forgiveness.  Continue reading “Paycheck Protection Program Loan Forgiveness Rules Eased for Smallest Borrowers”

Paycheck Protection Program spread loans widely, if not evenly

August 7, 2020
Congress charged the Paycheck Protection Program (PPP), enacted under the Coronavirus Aid, Relief, and Security (CARES) Act on March 27, with lending to small businesses stricken by the effects of COVID-19, and authorized private lenders to facilitate an unprecedented flow of Small Business Administration (SBA)-guaranteed loans. On this first objective, the program delivered, approving nearly 4.9 million loans with a total volume just north of $521 billion. But its performance, its efficacy, and its efficiency remain unsettled questions. Continue reading “Paycheck Protection Program spread loans widely, if not evenly”

Design Considerations and Interesting Features of SME Support Programs

July 23, 2020
Over the past four months, governments have announced more than 700 programs to provide assistance to small- and medium-sized enterprises. These firms are vital to the world economy and are particularly vulnerable to the COVID-19 shock.   YPFS has compiled a list of design considerations for policymakers in developing and implementing SME support programs. Under each design consideration, we have a number of observations regarding interesting features and design challenges seen across programs to date.   Download this PDF to access our resource.  Continue reading “Design Considerations and Interesting Features of SME Support Programs ”

Utilization of Credit Support Programs for SMEs

July 20, 2020
In response to the COVID-19 pandemic, governments have implemented a variety of programs to support small- and medium-sized enterprises (SMEs). A large portion of these programs are designed to facilitate credit access. These programs range in size, eligibility, and terms. YPFS has begun to compile usage information on 26 major programs across 16 countries. The information can be found in this spreadsheet.   Continue reading “Utilization of Credit Support Programs for SMEs”