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Working Paper

SBA-Loan Guarantees and Local Economic Growth

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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.
04.01.2005ISSN 2573-7953 WP 05-03DOI 10.26509/frbc-wp-200503
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., William E. Jackson III, and James B. Thomson. 2005. “SBA-Loan Guarantees and Local Economic Growth.” Federal Reserve Bank of Cleveland, Working Paper No. 05-03. https://doi.org/10.26509/frbc-wp-200503