Heard on the Street: small versus big banks, eleventh hour PPP guidance, and why capitalism might be racist

Heard on the Street – here’s what we were reading last week:

Who Lends to Small Businesses?: It’s tempting to suppose that small depository institutions are more likely to lend to smaller businesses. But it turns out that the average large-bank loan is a lot smaller than the average small-bank loan.

Eleventh-hour SBA guidance provides leniency for businesses deciding whether or not to return PPP loans: Businesses were down to the wire deciding whether or not they should return PPP loans, as recent guidelines about having to prove their need for loans prompted many to proactively return them. But on Wednesday, new guidance should calm some businesses’ fears over future liability or legal consequences even if they didn’t need the loans.

Small Banks Save Small Businesses, So Why Aren’t There More Small Banks?: Small lenders pushed their limits and initially outperformed large lenders; the big banks finally caught up in round 2, making two-thirds of PPP round 2 loans so far. The Paycheck Protection Program has not prioritized underserved and rural markets as directed by the CARES Act legislation that created the program.

Is Capitalism Racist?: The new history of slavery seeks to obliterate the economic and moral distinction between slavery and capitalism, and between the South and the North, by showing them to have been all part of a single system.