contained in the June bank Call Reports, we find that small commercial and industrial (C&I) loans add value to community banks …This study provides direct evidence of the value to banks arising from relationship lending by estimating the market … business loans is observed primarily at small community banks, and it was present during the Great Recession as well as during …

We argue that the focus of community banks on relationship lending to small businesses combined with their relatively … banks. Consistent with this argument we find, controlling for local economic conditions, more PPP lending per small business … in areas in which community banks made more PPP loans relative to larger banks. In addition, consistent with a greater …