IDEAS home Printed from https://ideas.repec.org/a/ags/uersaw/302871.html
   My bibliography  Save this article

Rural Businesses That Receive USDA Business and Industry Guaranteed Loans Less Likely To Fail

Author

Listed:
  • Rupasingha, Anil
  • Pender, John

Abstract

USDA implements several loan and grant programs to support rural businesses. Of these, the Business and Industry (B&I) Guaranteed Loan Program is the largest, with a program level of $892 million (the total value of all loans given under the program) in 2017. By reducing lenders’ risk, the B& I program encourages them to provide more generous terms or larger principal amounts, or to approve loans to rural businesses that they otherwise would not make. ERS researchers found that receiving a B&I loan reduced the risk of business failure, although this effect dropped with time.

Suggested Citation

  • Rupasingha, Anil & Pender, John, 2019. "Rural Businesses That Receive USDA Business and Industry Guaranteed Loans Less Likely To Fail," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 0(08), September.
    • Handle: RePEc:ags:uersaw:302871
    DOI: 10.22004/ag.econ.302871
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/302871/files/USDA%20ERS%20-%20Rural%20Businesses%20That%20Receive%20USDA%20Business%20and%20Industry%20Guaranteed%20Loans%20Less%20Likely%20To%20Fail.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.302871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersaw:302871. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.