Government Guaranteed Small Business Loans and Regional Growth

@article{Lee2017GovernmentGS,
  title={Government Guaranteed Small Business Loans and Regional Growth},
  author={Yong Suk Lee},
  journal={Entrepreneurship \& Finance eJournal},
  year={2017}
}
  • Yong Suk Lee
  • Published 2017
  • Business
  • Entrepreneurship & Finance eJournal
This paper examines the impact of government guaranteed small business loans on regional growth. I construct a metro-level panel of the Small Business Administration's guaranteed loans and examine economic growth between 1993 and 2002, across 316 metro areas in the US. A simple OLS regression finds a significant positive relationship between small business loans and regional growth. However, first-difference and instrumental variable regressions that mitigate endogeneity find no significant… Expand
Evaluating the effects of Small Business Administration lending on growth
Conventional wisdom suggests that small businesses are innovative engines of Schumpetarian growth. However, as small businesses, they are likely to face credit rationing in financial markets. IfExpand
Problems with crisis intervention: When the government wants to restrain big banks but punishes small businesses instead
Abstract Following the 2008 financial crisis, Congress passed the Dodd-Frank Act (DF) with the intent of reducing systemic risk posed by big banks to the country’s financial system. We empiricallyExpand
Empirical Evidence of Risks of Public-Loan Finance: Comparison between Self-Employers and SMEs
Public financial loans are very complex. However, previous research has largely neglected the effective management of public funds. More specifically, how to maintain the optimal balance betweenExpand
Franchisees and Loan Default on Third-Party Guarantee Loans: Evidence From the United States
We test the inefficient risk-bearing hypothesis—that third-party loan guarantors bear a higher risk on loans to franchisees than on loans to independent businesses—by assessing whether franchiseesExpand
Public funding and financial performance of entrepreneurial firms ∗
This paper empirically compares the financial performance of entrepreneurial firms after receiving public funding provided directly to entrepreneurs or through financial intermediaries. TheExpand
Mortgage affordability and entrepreneurship: Evidence from spatial discontinuity in Help-to-Buy equity loans
Abstract We exploit a policy change in the UK Help-to-Buy (HTB) equity loan scheme in order to identify the causal link between mortgage affordability and entrepreneurship activity at the localExpand
Differences in the Usage of Credit Guarantees Across Banks
We investigate differences in the use of credit guarantees among banks by using a bank-firm matched dataset from Japan. By following Khwaja and Mian (2008) to control for borrower characteristics andExpand
Does greater bank competition increase third-party guarantee loan default rates? evidence from U.S. interstate branching deregulation
ABSTRACT Exploiting the interstate branching restrictiveness law that allowed states to erect barriers to branch expansion, we test whether increased interbank competition increases risk-bearing,Expand
Structure of Small and Medium-Sized Business- Results of Total Statistic Observations in Russia
The aim of the research is estimation of regularities and tendencies, characteristic for modern sectoral structure of small and mediumsized business in Russia. The subject of the research is a set ofExpand
Small Business Leaders' Strategies for Obtaining United States Government Subcontracts
Small Business Leaders’ Strategies for Obtaining United States Government Subcontracts by Damian C. Dunbar MBA, Colorado Technical University, 2008 BA, Baker College, 2006 Doctoral Study Submitted inExpand
...
1
2
3
...

References

SHOWING 1-10 OF 64 REFERENCES
Small Firm Finance, Credit Rationing, and the Impact of SBA‐Guaranteed Lending on Local Economic Growth
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 indirectExpand
Small Business and the Value of Community Financial Institutions
This paper examines whether community banks have a niche in the production of soft information when lending to small firms. A composite measure of soft information production is created from ownerExpand
Loan guarantees: Costs of default and benefits to small firms
Abstract Governments of most countries seek to encourage Small and Medium Sized Enterprise (SME) growth and the job creation that many believe is fostered by such growth. Substantive growth usuallyExpand
Entrepreneurship and Credit Constraints: Evidence from a French Loan Guarantee Program
We use information on a French loan guarantee program in order to assess the consequences of credit constraints for new ventures. Loan Guarantee Programs, as implemented in France, are an effectiveExpand
Incrementality of SME Loan Guarantees
In many countries, loan guarantee programs are important elements of government policy with respect to small- and medium-sized enterprises (SMEs). If loan guarantee schemes are to be effective, aExpand
Credit Guarantees and New Bank Relationships
Credit guarantee schemes for bank loans are at the heart of most Governments’ strategies to help firms, and often direct vast volumes of credit. This paper examines Chile’s credit guarantee schemeExpand
How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany
We analyze the development of employment in start-up cohorts, which is the direct gross employment effect of the new businesses. The data is for West Germany and covers the 1984–2002 period. WhileExpand
The Government as Venture Capitalist: The Long-Run Impact of the Sbir Program
Public programs to provide early-stage financing to firms, particularly high-technology companies, have become commonplace in the United States and abroad. The long-run effectiveness of theseExpand
The Government as Venture Capitalist: The Long-Run Effects of the Sbir Program
Public programs to provide early-stage financing to firms, particularly high-technology companies, have become commonplace in the United States and abroad. The long-run effectiveness of theseExpand
Entrepreneurship, small businesses and economic growth in cities
Does entrepreneurship cause local employment and wage growth, and if so, how large is the impact? Empirical analysis of such a question is difficult because of the joint determination ofExpand
...
1
2
3
4
5
...