On Sba-Guaranteed Lending and Economic Growth

FRB of Cleveland Working Paper No. 0403

37 Pages Posted: 3 May 2005

See all articles by Ben R. Craig

Ben R. Craig

Federal Reserve Bank of Cleveland; Deutsche Bundesbank

William E. Jackson

Culverhouse College of Business, University of Alabama

James B. Thomson

University of Akron

Date Written: April 2004

Abstract

Increasingly, policymakers are looking to the small business sector as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs. Encouraging lending to small business is the primary policy objective of the Small Business Administration (SBA) loan-guarantee program. Using a panel data set of SBA-guaranteed loans we assess whether SBA-guaranteed lending has an observable impact on local and regional economic performance.

Keywords: small business, economic growth, loan guarantees, credit rationing, relationship lending

JEL Classification: G38, H81, O16

Suggested Citation

Craig, Ben R. and Jackson, William E. and Thomson, James B., On Sba-Guaranteed Lending and Economic Growth (April 2004). FRB of Cleveland Working Paper No. 0403. Available at SSRN: https://ssrn.com/abstract=712624 or http://dx.doi.org/10.2139/ssrn.712624

Ben R. Craig

Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101
United States
216-579-2061 (Phone)
216-579-3050 (Fax)

Deutsche Bundesbank

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

William E. Jackson

Culverhouse College of Business, University of Alabama ( email )

Tuscaloosa, AL 35487-0225
United States
205.348.6217 (Phone)
205.348.6695 (Fax)

James B. Thomson (Contact Author)

University of Akron ( email )

Akron, OH 44325-4803
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
164
Abstract Views
1,240
rank
180,404
PlumX Metrics