New information on lending to small businesses and small farms: the 1996 CRA data

Bostic, Raphael W.; Canner, Glenn B.

doi:10.17016/bulletin.1998.84-1

Journal Article

New information on lending to small businesses and small farms: the 1996 CRA data

Abstract: As a consequence of recent revisions to the regulations that implement the Community Reinvestment Act (CRA), new information is now publicly available on the geographic distribution of small loans to businesses and farms and on community development lending. Because small businesses and small farms are more likely than larger ones to borrow small amounts, the CRA data on small loans are likely to provide a reasonable measure of the extension of credit to such businesses. Thus, the CRA data provide new opportunities to gauge the flow of credit to communities with differing economic and demographic characteristics. This article presents an initial assessment of the new CRA data on originations and purchases of small business and small farm loans during 1996. The focus of the analysis is on the broad patterns that emerge when the data are reviewed from a national perspective rather than on the lending activities of any individual institution.

Keywords: Bank loans; Small business; Agricultural credit;

JEL Classification: G28; G21; L11;

https://doi.org/10.17016/bulletin.1998.84-1