Working Paper

On government intervention in the small-firm credit market and its effect on economic performance


Abstract: In this paper we empirically test whether the Small Business Administration?s main guaranteed lending program?the 7(a) program?has a greater impact on economic performance in low-income markets than in others. This hypothesis is predicated on our previous research (Craig, Jackson, and Thomson 2007b), where we investigate aggregate SBA guaranteed lending. In that research we found that the overall impact of SBA guaranteed lending on economic performance is significant and positive in low-income markets.

Keywords: Small Business Administration; Small business - Finance; Economic development;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 2007

Number: 0702