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Job Creation, Small vs. Large vs. Young, and the SBA

48 Pages Posted: 17 Sep 2015 Last revised: 2 Dec 2015

J. David Brown

US Census Bureau Center for Economic Studies; IZA Institute of Labor Economics

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Yana Morgulis

Government of the United States of America - Bureau of the Census

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Date Written: September 1, 2015

Abstract

Analyzing a list of all Small Business Administration (SBA) loans in 1991 to 2009 linked with annual information on all U.S. employers from 1976 to 2012, we apply detailed matching and regression methods to estimate the variation in SBA loan effects on job creation and firm survival across firm age and size groups. The estimated number of jobs created per million dollars of loans within the small business sector generally increases with size and decreases in age. The results suggest that the growth of small, mature firms is least financially constrained, and that faster growing firms experience the greatest financial constraints to growth. The estimated association between survival and loan amount is larger for younger and smaller firms facing the “valley of death.”

Suggested Citation

Brown, J. David and Earle, John S. and Morgulis, Yana, Job Creation, Small vs. Large vs. Young, and the SBA (September 1, 2015). US Census Bureau Center for Economic Studies Paper No. CES-WP- 15-24. Available at SSRN: https://ssrn.com/abstract=2661480

J. David Brown (Contact Author)

US Census Bureau Center for Economic Studies ( email )

4600 Silver Hill Road
Washington, DC 20233
United States
301-763-8769 (Phone)
301-763-5935 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

John S. Earle

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Yana Morgulis

Government of the United States of America - Bureau of the Census ( email )

4600 Silver Hill Road
Suitland, MD 20746
United States

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