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Regional Redistribution through SBA Guaranteed Loan Programs

Lee, Churn Ken; Lee, Munseob - 2022

We document and quantify a new implicit transfer mechanism in the SBA 7(a) loan program that redistributes funds between US states. We use SBA 7(a) loan data in conjunction with Dealscan private corporate loan data to show that SBA 7(a) loan interest rates are much less responsive to predicted...

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