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

Author Info

  • 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.

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Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 0702.

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Date of creation: 2007
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Handle: RePEc:fip:fedcwp:0702
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Keywords: Small Business Administration ; Small business - Finance ; Economic development;

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  30. Ben R. Craig & William E. Jackson & James B. Thomson, 2004. "On SBA-guaranteed lending and economic growth," Working Paper 0403, Federal Reserve Bank of Cleveland.
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Cited by:

  1. 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.
  2. Honohan, Patrick, 2010. "Partial credit guarantees: Principles and practice," Journal of Financial Stability, Elsevier, vol. 6(1), pages 1-9, April.

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