Nonprofit Organizations’ Financial Obligations and the Paycheck Protection Program

نویسندگان

چکیده

We examine nonprofit organizations’ involvement in the Paycheck Protection Program (PPP). The PPP provided participants with forgivable loans to pay employee salaries, increasing participants’ financial flexibility during pandemic. associations between nonprofits’ prepandemic obligations (e.g., long-term debt and donor-restricted net assets) participation loan characteristics. First, we find organizations participated at a lower rate than other small business industries that nonprofits greater were more likely participate program. Second, positively associated amount received as percentage of total payroll costs. Last, although approximately 11% failed obtain forgiveness, restricted assets have their forgiven. Our results suggest donor used increase flexibility. This paper was accepted by Ranjani Krishnan, accounting. Supplemental Material: data files online appendix are available https://doi.org/10.1287/mnsc.2023.4804 .

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ژورنال

عنوان ژورنال: Management Science

سال: 2023

ISSN: ['0025-1909', '1526-5501']

DOI: https://doi.org/10.1287/mnsc.2023.4804