Search Results
Journal Article
CRA and the SBA: helping to meet community credit needs
Journal Article
Are SBA loan guarantees desirable?
Over the last 10 years, the Small Business Administration has been responsible for well over $100 billion in small business credit extensions, more than any single private lender. This Commentary explores the motivations for such a large investment of taxpayer dollars.
Working Paper
The importance of financial market development on the relationship between loan guarantees for SMEs and local market employment rates
We empirically examine whether a major government intervention in the small-firm credit market yields significantly better results in markets that are less financially developed. The government intervention that we investigate is SBA-guaranteed lending. The literature on financing small and medium size enterprises (SMEs) suggests that small firms may be exposed to a particular type of market failure associated with credit rationing. And SMEs in markets that are less financially developed will likely face a greater degree of this market failure. To test our hypothesis, we use the level of bank ...
Journal Article
Microloans and moral support
Journal Article
SBA serves up backing for restaurant owner
Report
COVID Response: The Paycheck Protection Program Liquidity Facility
To bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP), the Federal Reserve, with the backing of the Secretary of the Treasury, established the Paycheck Protection Program Liquidity Facility (PPPLF). The facility was intended to supply liquidity to financial institutions participating in the PPP and thereby provide relief to small businesses and help them maintain payroll. In this article, we lay out the background and rationale for the creation of the facility, cover the salient features of the PPP and the PPPLF, and analyze the facility’s ...
Working Paper
The security issue decision: evidence from small business investment companies
Using a unique transactions-level dataset, this paper examines the investment choices of small business investment companies (SBICs), which are private venture capital firms licensed and regulated by the U.S. Small Business Administration (SBA). SBICs make debt and equity investments in small businesses, and we seek to explain their security choices. We focus on factors suggested by asymmetric information and contracting theories of security choice. Overall, our results are consistent with the predictions of contracting theory, although certain aspects of our results also support asymmetric ...
Journal Article
Entrepreneurship in the changing economy: from survival to sustainability
This issue of Banking and Community Perspectives offers an overview of the ideas presented at "Entrepreneurship in the Changing Economy: From Survival to Sustainability." This forum took place on Oct. 14, 2009, in Dallas, Houston and San Antonio. Speakers from the Ewing Marion Kauffman Foundation, Small Business Administration and Aspen Institute gave national perspectives on entrepreneurship in the changing economy.
Working Paper
Small-firm credit markets, SBA-guaranteed lending, and economic performance in low-income areas
SBA guaranteed-lending programs are one of many government-sponsored market interventions aimed at promoting small business. The rationale for providing SBA loan guarantees is often based on the argument that they reduce credit rationing in low-income markets for small business loans. In this paper we empirically test whether SBA-guaranteed lending has a greater impact on economic performance in low-income markets. Using local labor market employment rates as our measure of economic> performance, we find evidence consistent with this proposition. In particular, we find a positive and ...