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What is the impact of Small Business Administration Preferred Lenders Program (PLP) on the distance between banks and small businesses and the pricing of the loans granted? We test predictions from a stylized transportation cost model on 7(a) loan data from 2008 to 2019. We find that non-PLP...
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world. The explanatory variables consist of competition, profit loss sharing (PLS) financing, and bank-specific variables … show that low competition discourages banks from having a high capital buffer. Stability, bank size and high financing …
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