Racial Protests and Credit Access
Recent local racial protests and the subsequent national racial justice movement following George Floyd’s death heightened awareness of racial disparities in the US. Analyzing Paycheck Protection Program loans using difference-in-differences and event-study methodologies, we find that local racial protests improve credit access for Black business owners. The increased social media and public attention following George Floyd’s death also positively influenced public perceptions of racial equity, leading to relatively larger loan amounts for Black business owners compared to other racial-ethnic groups. We find implicit and explicit racial biases, including within the finance sector, decreased after Floyd’s death, driving these effects.
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Copy CitationRaffi E. Garcia and Alberto Ortega, "Racial Protests and Credit Access," NBER Working Paper 32477 (2024), https://doi.org/10.3386/w32477.Download Citation
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