Did the Pandemic Small Business Aid Work?

This chapter evaluates the effectiveness of pandemic relief efforts, especially the Paycheck Protection Program, in achieving their goals of preserving small business employment and survival. It reviews research findings and data trends related to jobs, business exits, and new firm creation. Though estimates vary, most research confirms that the speed and magnitude of the federal small business aid positively affected both employment and firm survival, despite some fraud. Fintechs played a key role in extending the reach and equity of the programs. While inflation emerged as a concern in 2022, the chapter concludes that the pandemic policies successfully bridged small businesses through the crisis.