In September 2008, the US government placed Fannie Mae and Freddie Mac into conservatorship and entered into preferred stock purchase agreements with each. Since that time, these two government-sponsored enterprises (GSEs) have received $148 billion in taxpayer-injected equity. By contrast, the...

The effectsof bank loan availability on debt financing by small businesses areexplored. Specifically, the impact of this availability on trade creditor credit cards is considered. Trade credit is often used by small firmsas short-term financing, but it can be costly if the funds are not repaid...

Recent attention has been focused on how Federal Home Loan Bank lending to commercial banks may create a new significant risk exposure to the Federal Deposit Insurance Corporation. This concern is prompted by the potential moral hazard created by the FHLBank policy of lending at one rate, its...

Using survey data from a panel of small U.S. firms, assessments of changes in the degree of bank competition for their financial business is used to determine the effect of competition on credit availability, loan terms, and service performance by owners of small businesses. Reported intensity...

This paper uses firm-level data from the 1995 Credit, Banks and Small Business Survey, conducted by the National Federation of Independent Business, to analyze the role of trade credit in the financing of small businesses. A unique attribute of this data set is that it can distinguish between...

Do business bailouts help alleviate recipient firms’ financial and economic constraints, are effects strongest for the primary targets of the bailouts, and are effects temporary or long-lasting? We address these questions for the Paycheck Protection Program (PPP) small business bailout during...

This paper presents empirical evidence on the role loan officers play in facilitating small firm access to commercial bank loans. If loan officers use soft information (e.g., assessments of character, information from customers and suppliers) to make lending decisions that would not otherwise be...

This paper investigates the effects of bank loan availability on the trade credit and credit card demand of small firms, using firm-level data from the 1995 Credit, Banks, and Small Business Survey, conducted by the National Federation of Independent Business. We find that firms increase their...

This paper examines whether community banks have a niche in the production of soft information when lending to small firms. A composite measure of soft information production is created from owner ratings of bank performance characteristics using survey data from a national sample of U.S. small...

This paper examines the association between banking relationships, access to credit, and loan pricing using survey data from 3,642 small firms. The information value of banking relationships has two components: an institutional memory based on arm?s length data acquired from the firm and agent...