Increasingly, policymakers look to the small business sector as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs. Encouraging lending to small business is the primary...

The credit access gap experienced by minority entrepreneurs has convinced researchers that discrimination is widespread and systematic in the small business credit market. The Small Business Administration's (SBA) guaranteed lending program was designed to respond to this credit-rationing...