Table 5.

PPP Exposure and Homebase Employment Outcomes. Table 5 reports the results of OLS regressions examining the relation between exposure to PPPE during the first round and the difference between a firm’s average employment outcomes in the two weeks prior to the launch of PPP and the firm’s outcomes in each of the following weeks. $\Delta$Bus. Shutdown, is the difference between the firm’s shutdown status in a week and its average shutdown status in weeks 10 and 11, where shutdown status takes a value of one if the business reported zero hours worked over the entire week. $\Delta$Hours Worked, is the difference in the ratio of hours worked in each establishment in a week and the average ratio of hours worked in that establishment in weeks 10 and 11. The ratio of hours worked in each establishment is measured as the hours worked in that week relative to the hours worked in that same establishment during the last two weeks of January. $\Delta$Nbr. Employees, is the difference in the ratio of the number of employees in each establishment in a week and the average ratio of number of employees in that establishment in weeks 10 and 11. The ratio of number of employees in each establishment is measured as the number of distinct employees that worked in the establishment in that week relative to the number of distinct employees working in that same establishment during the last two weeks of January. Zip PPPE (Round 1) is the weighted average of bank PPPE during the first round at the ZIP level. The weights are defined by the share of the number of branches of each bank in the zip code or within 10 miles of the center of the respective ZIP. Predicted PPPE is the weighted average of predicted bank PPPE during the first round at the ZIP level. The predicted values of bank PPPE are obtained from estimating the empirical specification of column (8) of Table 2. The weights are defined by the share of the number of branches of each bank in the zip code or within 10 miles of the center of the respective ZIP. I(Month=‘M’), where $M=\{April,May,June,July,August\}$ are indicator variables for the weeks that span those respective months. Other control variables include interactions between the median household income, social distance index, COVID cases per capita and deaths per capita measured as of week 9 interacted with the indicator variables for April, May, June, July, and August and controls for the average tier 1 capital and core deposit ratios of all banks within the zip code or within a 10 miles radius of the zip code also interacted with the indicator variables for April, May, June, July, and August. Standard errors are clustered at the state level. ***, **, and *, represent statistical significance at 1%, 5%, and 10% levels, respectively.

	(1)	(2)	(3)	(4)	(5)	(6)
	$\Delta$ Bus. Shutdown		$\Delta$ Hours Worked		$\Delta$ Nbr. Employees
Zip PPPE (Round #1) $\times$ I(Month=April)	0.002	0.002	0.002	0.003	0.001	0.003
	(0.004)	(0.003)	(0.003)	(0.002)	(0.003)	(0.002)
Zip PPPE (Round #1) $\times$ I(Month=May)	-0.000	-0.003	0.022***	0.020***	0.019***	0.020***
	(0.004)	(0.004)	(0.004)	(0.004)	(0.004)	(0.005)
Zip PPPE (Round #1) $\times$ I(Month=June)	0.005	-0.003	0.034***	0.033***	0.030***	0.032***
	(0.005)	(0.005)	(0.006)	(0.006)	(0.006)	(0.007)
Zip PPPE (Round #1) $\times$ I(Month=July)	0.011**	-0.001	0.029***	0.032***	0.026***	0.033***
	(0.005)	(0.006)	(0.008)	(0.008)	(0.008)	(0.009)
Zip PPPE (Round #1) $\times$ I(Month=August)	0.011*	-0.001	0.029***	0.031***	0.024**	0.031***
	(0.005)	(0.006)	(0.008)	(0.008)	(0.009)	(0.009)
Observations	819834	819834	819834	819834	819834	819834
Adjusted $R^2$	0.058	0.602	0.134	0.629	0.110	0.571
State$\times$Industry$\times$Week Fixed Effects	Yes	Yes	Yes	Yes	Yes	Yes
Other Control Variables	No	Yes	No	Yes	No	Yes
Firm Fixed Effects	No	Yes	No	Yes	No	Yes
	$\Delta$ Bus. Shutdown		$\Delta$ Hours Worked		$\Delta$ Nbr. Employees
Predicted PPPE $\times$ I(Month=April)	-0.000	0.000	-0.001	-0.001	-0.000	0.000
	(0.003)	(0.003)	(0.002)	(0.002)	(0.002)	(0.002)
Predicted PPPE $\times$ I(Month=May)	-0.005	-0.006**	0.012***	0.009***	0.010***	0.008**
	(0.003)	(0.003)	(0.004)	(0.003)	(0.004)	(0.003)
Predicted PPPE $\times$ I(Month=June)	-0.003	-0.007*	0.022***	0.019***	0.019***	0.017***
	(0.004)	(0.004)	(0.005)	(0.005)	(0.006)	(0.006)
Predicted PPPE $\times$ I(Month=July)	0.000	-0.005	0.019***	0.017***	0.013*	0.014**
	(0.003)	(0.004)	(0.005)	(0.004)	(0.007)	(0.007)
Predicted PPPE $\times$ I(Month=August)	0.001	-0.005	0.017***	0.016***	0.011	0.012*
	(0.004)	(0.004)	(0.005)	(0.004)	(0.007)	(0.007)
Observations	819834	819834	819834	819834	819834	819834
Adjusted $R^2$	0.058	0.602	0.133	0.629	0.110	0.571
State$\times$Industry$\times$Week Fixed Effects	Yes	Yes	Yes	Yes	Yes	Yes
Other Control Variables	No	Yes	No	Yes	No	Yes
Firm Fixed Effects	No	Yes	No	Yes	No	Yes