Appendix: Mission-Oriented Banks in Texas and Underserved Businesses: Lessons from the Paycheck Protection Program
This appendix accompanies the report Mission-Oriented Banks in Texas and Underserved Businesses: Lessons from the Paycheck Protection Program.
Table 1: Odds Ratios for Lending by a Community Financial Institution | |||
(1) All CFIs Odds Ratio (95% confidence interval) |
(2) MDI Odds Ratio (95% confidence interval) |
(3) CDFI Odds Ratio (95% confidence interval) |
|
Firm Characteristics | |||
Microfirm | 0.76*** (0.74, 0.78) | 0.73*** (0.71, 0.75) | 1.47*** (1.38, 1.56) |
Start-up | 0.86*** (0.82, 0.90) | 0.68*** (0.64, 0.72) | 6.89*** (6.13, 7.75) |
Nonprofit | 0.84*** (0.78, 0.91) | 0.95 (0.87, 01.03) | 0.84** (0.71, 0.99) |
Leisure and hospitality | 1.50*** (1.46, 1.54) | 1.90*** (1.84, 1.96) | 1.11*** (1.08, 1.15) |
Loan characteristics | |||
First draw PPP | 2.86*** (2.80, 2.91) | 0.54*** (0.52, 0.56) | 4.53*** (4.41, 4.65) |
Higher share of loan devoted to payroll | 0.04*** (0.04, 0.04) | 0.06*** (0.05, 0.07) | 0.00*** (0.00, 0.00) |
Date approved | 1.01*** (1.01, 1.01) | 0.99*** (0.99, 0.99) | 1.02*** (1.02, 1.02) |
Less than $150,000 | 1.55*** (1.48, 1.62) | 1.63*** (1.56, 1.72) | 1.25*** (1.11, 1.40) |
Business Location Characteristics | |||
Rural | 0.87*** (0.84, 0.89) | 1.08** (1.02, 1.13) | 0.72*** (0.69, 0.74) |
LMI neighborhood | 0.95*** (0.94, 0.97) | 0.79*** (0.77, 0.82) | 0.95*** (0.93, 0.97) |
Share of residents of color in ZIP | 1.01*** (1.01, 1.01) | 1.02*** (1.02, 1.02) | 1.01*** (1.00, 1.01) |
Unemployment rate (county) | 1.22*** (1.21, 1.23) | 1.43*** (1.42, 1.44) | 1.09*** (1.08, 1.10) |
Total number of CFIs in city | 1.00*** (1.00, 1.01) | 1.00*** (1.00, 1.00) | 1.00*** (1.00, 1.00) |
Observations | 868,538 | 868,538 | 868,538 |
McFadden’s pseudo R2 | 0.17 | 0.20 | 0.27 |
*Denotes statistical significance at the 90 percent confidence level. **Denotes statistical significance at the 95 percent confidence level. ***Denotes statistical significance at the 99 percent confidence level. |
Table 2. Odds Ratios for Full and Partial PPP Loan Forgiveness | ||
| (1) Low Forgiveness Odds Ratio (95% confidence interval) | (2) No Forgiveness Odds Ratio (95% confidence interval) |
Firm Characteristics | ||
Microfirm | 1.44*** (1.38, 1.50) | 1.41*** (1.35, 1.47) |
Start-up | 1.62*** (1.56, 1.67) | 1.55*** (1.49, 1.60) |
Nonprofit | 0.62*** (0.55, 0.70) | 0.59*** (0.52, 0.67) |
Leisure and hospitality | 1.26*** (1.20, 1.32) | 1.12*** (1.06, 1.19) |
Loan characteristics | ||
Higher share of loan devoted to payroll | 2.17*** (1.85, 2.54) | 2.24*** (1.89, 2.67) |
Date approved | 1.02*** (1.02, 1.02) | 1.02*** (1.02, 1.02) |
Less than $150,000 | 0.65*** (0.61, 0.68) | 0.60*** (0.56, 0.63) |
Top 10 bank | 1.01 (0.97, 1.05) | 0.89*** (0.86, 0.93) |
MDI or CDFI | 0.43*** (0.39, 0.48) | 0.34*** (0.30, 0.39) |
Business Location Characteristics | ||
Rural | 0.95* (0.90, 1.00) | 0.90** (0.85, 0.96) |
LMI neighborhood | 0.98 (0.88, 1.10) | 1.03 (0.92, 1.16) |
Total PPP loans approved in ZIP | 1.00 (0.99, 1.01) | 1.01 (0.99, 1.01) |
Share of residents of color in ZIP | 1.01*** (1.01, 1.01) | 1.01*** (1.01, 1.01) |
Unemployment rate (county) | 1.01*** (1.00, 1.03) |
1.03*** (1.02, 1.04) |
Total number of CFIs in city | 1.00*** (1.00, 1.01) | 1.00** (1.00, 1.00) |
Observations | 378,442 | 378,442 |
Pseudo R2 | 0.13 | 0.16 |
*Denotes statistical significance at the 90 percent confidence level. **Denotes statistical significance at the 95 percent confidence level. ***Denotes statistical significance at the 99 percent confidence level. |