Skip to:
  1. Main navigation
  2. Main content
  3. Footer
Working Paper

On SBA-Guaranteed Lending and Economic Growth

Download pdf
Increasingly, policymakers are looking to the small business sector as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs. Encouraging lending to small business is the primary policy objective of the Small Business Administration (SBA) loan-guarantee program. Using a panel data set of SBA-guaranteed loans we assess whether SBA-guaranteed lending has an observable impact on local and regional economic performance.
04.01.2004ISSN 2573-7953 WP 04-03DOI 10.26509/frbc-wp-200403
Keywords small business, economic growth, loan guarantees, credit rationing, relationship lending
JEL Classification Codes G38, H81, O16

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Craig, Ben R., James B. Thomson, and William E. Jackson III. 2004. “On SBA-Guaranteed Lending and Economic Growth.” Federal Reserve Bank of Cleveland, Working Paper No. 04-03. https://doi.org/10.26509/frbc-wp-200403