Download or read book Economic Factors Affecting Small Business Lending and Loan Guarantees written by N. Eric Weiss and published by . This book was released on 2008 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Economic Factors Affecting Small Business Lending and Loan Guarantees written by and published by . This book was released on 2013 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Where are We Now written by United States. Congress. House. Committee on Small Business. Subcommittee on Economic Growth, Capital Access, and Tax and published by . This book was released on 2014 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Initiatives to Promote Small Business Lending Jobs and Economic Growth written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2010 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financing State and Local Economic Development written by Michael Barker and published by Duke University Press. This book was released on 1983 with total page 518 pages. Available in PDF, EPUB and Kindle. Book excerpt: The contributors discuss alternative methods of financing state and local economic development, including the role of venture capital in urban development, the role of banking institutions in encouraging the growth of small business, and the place of pension funds in economic growth.

Download or read book Financing Small and Medium Sized Enterprises in Asia and the Pacific written by Asian Development Bank and published by Asian Development Bank. This book was released on 2022-03-01 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small and medium-sized enterprises (SMEs) are widely regarded as the backbone of economies and make a unique contribution to gross domestic product, exports, and employment. Yet, SMEs face multiple challenges in gaining access to finance that can fuel their growth. This publication scrutinizes the multiple factors affecting SMEs’ access to finance and the impact of credit guarantee schemes (CGSs), examines country case studies from across the globe, and highlights the financial and economic additionality of CGSs when they are rigorously setup. To support Asia and Pacific economies, the publication suggests operational policy recommendations for the key priority areas of CGSs, focusing on legal and regulatory setup, corporate governance, services offered, risk management, and monitoring.

Download or read book Small Business Banks and SBA Loan Guarantees written by Elisabeth Rhyne and published by Praeger. This book was released on 1988-09-07 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author, with the cooperation of the Brookings Institution and the Congressional Budget Office, analyzes the efficiency of the Small Business Administration. In the book's seven chapters Rhyne examines loan rate defaults, the subsidy issue, how banks respond to incentives to lend, and the philosophic question of the ultimate purpose of the SBA program. Coverage includes historical aspects, the life cycle of SBA loans, and various policy and financial issues of SBA programs. Rhyne is critical of the SBA loan guarantees; she presents recommendations for reforms and discusses the implications for other credit programs. . . . Original government data sources were used extensively in the research, making the work quite definitive as of the publishing date. Choice The Small Business Administration (SBA) loan guarantee program--one of the mainstays of small business financing--has been both sharply attacked as wasteful and staunchly defended as essential during recent debates over the Federal budget. This book clarifies the reasons for the often heated debate and offers new insights into whether the program does indeed subsidize the weak or perform a valuable service in bridging the small business credit gap. Rhyne argues persuasively that despite recent program improvements, the SBA allows a hefty subsidy to continue by tolerating frequent, costly defaults. She recommends that the program seek to become financially self-sustaining, thereby adopting a simple market-making function rather than a credit allocation role. The book with a brief history of the SBA program and its predecessor in the Reconstruction Finance Corporation. The author describes the program's political environment and demonstrates the central role of banks in the program. She then moves to a thorough analysis of the program's financial performance and assesses the impact of SBA loans on banks. Subsequent chapters examine the cost of the program to the SBA, the social goals of the program and how well it fulfills them, and the changes made in the program during the 1980s to improve its management efficiency. The final chapter explores policy changes that could improve the program's overall performance and offers recommendations for reform ranging from minor management improvements to major program restructuring. A landmark critique of a major governmental program and its impact on the business community, this book should be read by every banker, small business owner, and legislator with an interest in the fate of the SBA loan guarantee program, or in the government's role in credit allocation.

Download or read book Thanks But No Banks written by Patricia Ayres and published by . This book was released on 1994-09 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Repercussions on Small Banks and Small Businesses of Procyclical Bank Capital and Countercyclical Loan Guarantees written by Diana Hancock and published by . This book was released on 2007 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small businesses rely on banks for credit more than large businesses do. As a result, small business may be more adversely affected when adverse shocks, such as reduced bank capital or higher interest rates, reduce the supply of bank loans. We use annual, state-level data for 1990-2000 to estimate: (1) how much lower bank capital and higher interest rates affected businesses of various sizes, (2) how much SBA-guaranteed loans cushioned small business in particular and the economy more generally, and (3) whether the effects were larger during recessions and when interest rates were high.Lower bank capital and higher interest rates reduced bank lending, economic growth, employment, and payrolls at businesses of all sizes. Furthermore, lower bank capital at small banks impinged more on small business than on large business. The results also provided some weak evidence that SBA-guaranteed loans raised economic growth rates, employment, wages and salaries, and non-farm proprietors' incomes. SBA-guaranteed loans were less procyclical and less affected by capital pressures on banks than were non-guaranteed loans. As a result, SBA programs tended to stabilize the economy by offsetting the effects of recessions and bank capital pressures. When economic growth was slow or interest rates were high, the effects on small business of per unit change in bank capital, loan delinquencies, and SBA-guaranteed loans were larger.

Download or read book Small Business Administration Loan Programs written by Maureen D. Larsen and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Congressional interest in small business access to capital and the SBA's 7(a) program has increased in recent years for three interrelated reasons. The combination of these three factors has led to increased concern in Congress that small businesses might be prevented from accessing sufficient capital to enable small businesses to assist in the economic recovery. This book examines the SBA 7(a) Loan Guaranty program; the 504/CFC Loan Guaranty program; and the Microloan and Disaster Loan programs of the Small Business Administration, as well as their economic impact.

Download or read book The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses written by Federal Reserve Federal Reserve Board and published by Createspace Independent Publishing Platform. This book was released on 2015-12-14 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially. Large loans outstanding began to rebound by the third quarter of 2010 and essentially returned to their previous growth trajectory while small loans outstanding continued to decline. Furthermore, much of the drop in small business loans outstanding was evident at community banks. To address this perceived lack of supply of credit to small businesses, the Small Business Lending Fund (SBLF) was created as part of the 2010 Small Business Jobs Act. The fund was intended to provide community banks with low-cost funding that they could then lend to their small business customers. As of December 31, 2013, the U.S. Department of the Treasury reports that SBLF participants had increased their small business lending by $12.5 billion over their baseline numbers. The current paper uses Call Report data from community banks and thrift institutions to look at the impact of receiving funds from SBLF on their small business lending. The analysis controls for economic and demographic conditions, market structure and competition. Simple regression estimates indicate that participants in the SBLF program increased their small business lending by about 10 percent more than their non-participating counterparts, in line with numbers reported by Treasury. However, estimates that control for the ongoing growth path in small business lending indicate no statistically significant impact of SBLF participation on small business lending.

Download or read book The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses written by Federal Reserve Federal Reserve Board and published by CreateSpace. This book was released on 2015-04-27 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially. Large loans outstanding began to rebound by the third quarter of 2010 and essentially returned to their previous growth trajectory while small loans outstanding continued to decline. Furthermore, much of the drop in small business loans outstanding was evident at community banks. To address this perceived lack of supply of credit to small businesses, the Small Business Lending Fund (SBLF) was created as part of the 2010 Small Business Jobs Act. The fund was intended to provide community banks with low-cost funding that they could then lend to their small business customers. As of December 31, 2013, the U.S. Department of the Treasury reports that SBLF participants had increased their small business lending by $12.5 billion over their baseline numbers. The current paper uses Call Report data from community banks and thrift institutions to look at the impact of receiving funds from SBLF on their small business lending. The analysis controls for economic and demographic conditions, market structure and competition. Simple regression estimates indicate that participants in the SBLF program increased their small business lending by about 10 percent more than their non-participating counterparts, in line with numbers reported by Treasury. However, estimates that control for the ongoing growth path in small business lending indicate no statistically significant impact of SBLF participation on small business lending.

Download or read book Small Firm Credit Market Discrimination SBA Guaranteed Lending and Local Market Economic Performance written by Ben R. Craig and published by . This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We empirically test whether SBA-guaranteed lending has a greater impact on economic performance in markets with a high percentage of potential minority small businesses. This hypothesis is predicated on priors related to three overlapping assumptions. These three assumptions are: (1) The classic type of credit rationing developed in the seminal paper by Stiglitz and Weiss (1981) is more likely to occur in markets with a higher per capita percentage of minority small businesses because such markets are more likely to have more severe information asymmetry problems, (2) SBA-guaranteed lending is likely to reduce these credit rationing problems - thus improving the level of development of the local financial market, and (3) increased local financial market development helps to lubricate the wheels of economic performance (Rajan and Zingales, 1998). Using local labor market employment rates as our measure of economic performance, we find evidence consistent with this proposition. In particular, we find a positive and significant impact on the average annual level of employment in a local market of SBA-guaranteed lending in that local market. This impact is 200 percent larger in markets with a high percentage of potential minority small businesses. This result has important implications for public policy in general and SBA-guaranteed lending in particular.

Download or read book Financing SMEs and Entrepreneurs 2017 An OECD Scoreboard written by OECD and published by OECD Publishing. This book was released on 2017-04-21 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financing SMEs and Entrepreneurs 2017 provides information on debt, equity, asset-based finance, and framework conditions for SME and entrepreneurship finance, complemented with an overview of recent policy measures to support access to finance in 39 countries. The sixth instalment of this ...

Download or read book Financing SMEs and Entrepreneurs 2016 An OECD Scoreboard written by OECD and published by OECD Publishing. This book was released on 2016-04-14 with total page 494 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report monitors SME and entrepreneur access to finance in 37 countries.

Download or read book Racial Disparities in Access to Small Business Credit written by Sabrina T. Howell and published by . This book was released on 2021 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the sources of racial disparities in small business lending by studying the $806 billion Paycheck Protection Program (PPP), which was designed to support small business jobs during the COVID-19 pandemic. PPP loans were administered by private lenders but federally guaranteed, largely eliminating unobservable credit risk as a factor in explaining differential lending by race. We document that even after controlling for a firm's zip code, industry, loan size, PPP approval date, and other characteristics, Black-owned businesses were 12.1 percentage points (70% of the mean) more likely to obtain their PPP loan from a fintech lender than a traditional bank. Among conventional lenders, smaller banks were much less likely to lend to Black-owned firms, while the Top-4 banks exhibited little to no disparity after including controls. We use novel data to show that the disparity is not primarily explained by differences in pre-existing bank or credit relationships, firm financial positions, fintech affinity, borrower application behavior, or racial differences in rates of fraudulent PPP applications. In contrast, we document that Black-owned businesses' higher rate of borrowing from fintechs compared to smaller banks is particularly large in places with high anti-Black racial animus, pointing to a potential role for discrimination in explaining some of the racial disparities in small business lending. We find evidence that when small banks automate their lending processes, and thus reduce human involvement in the loan origination process, their rate of PPP lending to Black-owned businesses increases, with larger effects in places with more racial animus.

Download or read book Analysis of the Terms of Bank Lending and Risk Management written by Raymond L. Posey (Jr.) and published by . This book was released on 2010 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a three-part dissertation, which provides a multi-faceted examination of loans and lending to small businesses in the US, which are a key source of economic and job growth. From a broad perspective, this work shows the interplay among various terms of lending, marked differences in lender behavior based on size and type, and a significant role of multiple loans/lenders in explaining loan delinquencies. Essay 1 examines the role of loan guarantees in lines of credit grated to small businesses. The presence of a loan guarantee is associated with lower interest rates and smaller lines of credit. There is some evidence that loan guarantees and collateral are substitutes. Firms with longer banking relationships and fewer banking relationships are less likely to have loan guarantees applied. Since there is some evidence of simultaneity in the data, appropriate econometric procedures are used to obtain consistent parameter estimates. Essay 2 examines differences in terms of lending among two sizes of banks and farm lenders for small loans. Large farm lenders do use more collateral than large bank lenders, but small banks use more collateral than small farm lenders. There is evidence that small banks use more collateral than large banks. All farm lenders appear to use similar levels of collateral, whereas small banks use more collateral than large banks. The determinants of collateral differ based on lender characteristics. For all sizes of farm lenders, the shorter the term of the loan, the more likely the use of non-real estate collateral, and vice versa. Essay 3 examines the determinants of farm loan delinquencies, and in particular, the influence of multiple loans and multiple lenders on delinquency. The number of lenders used by a borrower, the number of loans, and the product of the two are all positively related to loan delinquency. These factors are at least as significant as standard financial ratios in explaining loan delinquency. The most consistent finding regarding farm borrower delinquency is that borrowers who have been denied credit in the past five years are more likely to have a delinquent loan. It is also found that borrowers using more lenders appear to be able to bargain for lower interest rates.