Based on the few studies in their 2009 literature review, Craig, Jackson, and Thomson find that the economic impact of SBA loans on regional economic performance is positive, albeit small This study analyzes the relationships between economic performance and SBA lending using a panel of...

Programs to direct finance to small firms are ubiquitous. We develop evidence of unexpected side-effects of these programs. Exploiting discontinuities in program eligibility in India’s PSL program, we show that targeted lending programs can slow growth, paradoxically creating financial...