| dc.description.abstract | This thesis investigates the distribution of Paycheck Protection Program (PPP) loans, focusing on racial disparities in loan allocation and the differential effects on rural businesses. Employing a Cragg-Hurdle regression model, I extend previous methodologies to explore the influence of a community's racial composition on PPP loan distribution, particularly in the previously unexamined third tranche. I also assess the program comprehensively. My results reveal that majority-minority communities, particularly those with a higher Black population share, received drastically more funding in the third tranche compared to earlier rounds. Additionally, I analyze the impact of nontraditional lenders and policy changes introduced by the Biden-Harris Administration, uncovering nuanced variations in loan distribution concerning urban and rural demographics. Ultimately, my findings indicate substantial shifts in racial disparities in PPP loan distribution across the third tranche and the entire program, underscoring the necessity for an updated understanding of this issue in the existing literature. | en_US |
