Table 2.

Bank PPPE and Capacity Constraints. Table 2 examines the relation between bank performance in deploying PPP during the first round of the program and bank characteristics. The dependent variable, Bank PPPE, is the number-based bank PPPE index. $\frac{Wages}{(DataExpenses+Wages)}$ is a measure of labor intensity at the bank that we compute as the ratio between bank wages (RIAD4135) and the sum of wages and data processing expenses (RIADC017). I(SBA Lender=1) is an indicator variable that takes the value of one if the bank originated at least one SBA 7(a) guaranteed loan between 2017 and 2019. SBA Loans/SBL Loans is the ratio between the number of SBA government-guaranteed loans that a bank originated between 2017 and 2019 and the number of all small business loans (SBA and non-SBA) that the bank held on its balance sheet at the end of 2019. Active Enforcement Action is an indicator variable that takes the value of one if the bank had an active enforcement action when the PPP was launched. I(Wells Fargo=1) is an indicator variable that takes the value of one for Wells Fargo Bank. Columns (5) – (8) include controls for size deciles to ensure that the results are not driven by differences in size. Standard errors are presented in parentheses, and are clustered at the state level. ***, **, and *, represent statistical significance at 1%, 5%, and 10% levels, respectively.

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	LHS is Bank PPPE
$\frac{Wages}{(DataExpenses+Wages)}$	0.330***			0.251***	0.295***			0.283***
	(0.072)			(0.060)	(0.060)			(0.055)
I(SBA Lender=1)		0.172***		0.170***		0.149***		0.150***
		(0.012)		(0.011)		(0.016)		(0.016)
SBA Loans/SBL Loans		0.158***		0.173***		0.162***		0.176***
		(0.036)		(0.036)		(0.038)		(0.037)
Active Enforcement Action			-0.283***	-0.280***			-0.254***	-0.256***
			(0.054)	(0.052)			(0.051)	(0.050)
I(Wells Fargo=1)			-0.418***	-0.554***			-0.470***	-0.522***
			(0.053)	(0.053)			(0.056)	(0.057)
Observations	5204	5212	5212	5204	5204	5212	5212	5204
Adjusted $R^2$	0.005	0.076	0.009	0.088	0.058	0.103	0.062	0.114
Other Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Size Deciles	No	No	No	No	Yes	Yes	Yes	Yes