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Federal Reserve Bank of Atlanta
FRB Atlanta Working Paper
SBA guaranteed lending and local economic growth
Ben R. Craig
William E. Jackson
James B. Thomson
Abstract

Increasingly, policymakers look 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's (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 economic performance. We find a positive and significant (although economically small) relationship between the relative levels of SBA guaranteed lending in a local market and the future per capita income growth in that market.


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Ben R. Craig & William E. Jackson & James B. Thomson, SBA guaranteed lending and local economic growth, Federal Reserve Bank of Atlanta, FRB Atlanta Working Paper 2005-28, 2005.
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