The Role of FinTech in the Paycheck Protection Program
Fintech, Pandemic, and the Financial System: Challenges and Opportunities
ISBN: 978-1-80262-948-4, eISBN: 978-1-80262-947-7
Publication date: 17 January 2023
Abstract
The relationship between borrowers and lenders can reveal a lot of information regarding loan pricing, information costs, and competition. In this study, the authors investigate the impact of FinTech lenders on Paycheck Protection Program (PPP) loan disbursement. Specifically, the authors investigate financial technology companies’ ability to provide loans at greater distances, expanding the available resources for businesses struggling during the Covid-19 pandemic. The authors find that not only were FinTechs able to lend at greater distances, but also they provided loans to firms that were younger and had less bank competition in their headquarters’ zip codes. The results remain consistent and are generalizable to the complete population of PPP loans.
Keywords
Citation
Rayfield, B., Ahmed, H., Duvernois, N. and Rayfield, L. (2023), "The Role of FinTech in the Paycheck Protection Program", Kim, S.-J. (Ed.) Fintech, Pandemic, and the Financial System: Challenges and Opportunities (International Finance Review, Vol. 22), Emerald Publishing Limited, Leeds, pp. 63-76. https://doi.org/10.1108/S1569-376720220000022004
Publisher
:Emerald Publishing Limited
Copyright © 2023 Blake Rayfield, Hasib Ahmed, Nicolas Duvernois and Lois Rayfield