On Government Intervention in the Small-Firm Credit Market and its Effect on Economic Performance | Zendy

Ben R. Craig | Zendy; William E. Jackson | Zendy; James B. Thomson | Zendy

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On Government Intervention in the Small-Firm Credit Market and its Effect on Economic Performance

Author(s) -

Ben R. Craig,

William E. Jackson,

James B. Thomson

Publication year - 2007

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.1003304

Subject(s) - economic interventionism , business , government (linguistics) , intervention (counseling) , financial system , politics , political science , psychology , philosophy , linguistics , psychiatry , law

In this paper we empirically test whether the Small Business Administration’s main guaranteed lending program—the 7(a) program—has a greater impact on economic performance in low-income markets than in others. This hypothesis is predicated on our previous research (Craig, Jackson, and Thomson 2007b), where we investigate aggregate SBA guaranteed lending. In that research we found that the overall impact of SBA guaranteed lending on economic performance is significant and positive in low-income markets.

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