Economic Factors Affecting Small Business Lending and Loan Guarantees (RL34400) / N. Eric Weiss.

Format:

Book

Author/Creator:

Weiss, N. Eric, author.

Contributor:

Library of Congress. Congressional Research Service, issuing body.

Series:

Report / Congressional Research Service ; RL34400

Language:

English

Subjects (All):

United States. Small Business Administration.

United States.

Consumer credit--Law and legislation.

Consumer credit.

Physical Description:

1 online resource (8 pages)

Updated irregularly

Edition:

[Library of Congress public edition].

Place of Publication:

Washington, D.C. : Congressional Research Service, 2008.

Summary:

The SBA requires holders of at least 20% of the ownership of a company to personally guarantee the loan. [...] Those who are concerned about the availability of credit to small businesses frequently suggest a number of reasons that small businesses may pay a higher 8 The SBA can guarantee 75%-85% of a certain private sector loans to small businesses under Sections 7(a) and 504 of the Small Business Act as amended (15 U.S. [...] The history between a small business and the bank that serves it gives the bank information on the owners, managers, markets, and potential of the loan applicant that is not available to other lenders. [...] The supply curve, which shows the amount of capital (measured on the horizontal axis) that is available in the economy at the interest rates (measured on the vertical axis), shifts to the left indicating that less capital is available at the same interest rate. [...] The demand curve, which shows the volume of loans (also measured on the horizontal axis) that business would take out at various interest rates also measured on the vertical axis), shifts to the left illustrating that fewer business loans are desired at the same interest rate.

Notes:

Report includes illustrations.

The CRS report home page provides access to all versions published since 2018 in accordance with P.L. 115-141; earliest version dated 2013.

Report includes bibliographical references.

Description based on online resource; title from PDF title page (Congressional Research Service, viewed June 7, 2023).

OCLC:

1135492880