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

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  • Ben R. Craig
  • William E. Jackson
  • James B. Thomson

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.

Suggested Citation

  • Ben R. Craig & William E. Jackson & James B. Thomson, 2007. "On government intervention in the small-firm credit market and its effect on economic performance," Working Papers (Old Series) 0702, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:0702
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    Cited by:

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    2. Uesugi, Iichiro & Sakai, Koji & Yamashiro, Guy M., 2010. "The Effectiveness of Public Credit Guarantees in the Japanese Loan Market," Journal of the Japanese and International Economies, Elsevier, vol. 24(4), pages 457-480, December.

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    Small Business Administration; small business finance; Economic development;
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