Government Guaranteed Small Business Loans and Regional Growth

  title={Government Guaranteed Small Business Loans and Regional Growth},
  author={Yong Suk Lee},
  journal={Entrepreneurship \& Finance eJournal},
  • 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
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