This book clarifies the reasons for the often heated debate and offers new insights into whether the program does indeed subsidize the weak or perform a valuable service in bridging the small business credit gap.
Author: Elisabeth Rhyne
Category: Business & Economics
The author, with the cooperation of the Brookings Institution and the Congressional Budget Office, analyzes the efficiency of the Small Business Administration. In the book's seven chapters Rhyne examines loan rate defaults, the subsidy issue, how banks respond to incentives to lend, and the philosophic question of the ultimate purpose of the SBA program. Coverage includes historical aspects, the life cycle of SBA loans, and various policy and financial issues of SBA programs. Rhyne is critical of the SBA loan guarantees; she presents recommendations for reforms and discusses the implications for other credit programs. . . . Original government data sources were used extensively in the research, making the work quite definitive as of the publishing date. Choice The Small Business Administration (SBA) loan guarantee program--one of the mainstays of small business financing--has been both sharply attacked as wasteful and staunchly defended as essential during recent debates over the Federal budget. This book clarifies the reasons for the often heated debate and offers new insights into whether the program does indeed subsidize the weak or perform a valuable service in bridging the small business credit gap. Rhyne argues persuasively that despite recent program improvements, the SBA allows a hefty subsidy to continue by tolerating frequent, costly defaults. She recommends that the program seek to become financially self-sustaining, thereby adopting a simple market-making function rather than a credit allocation role. The book with a brief history of the SBA program and its predecessor in the Reconstruction Finance Corporation. The author describes the program's political environment and demonstrates the central role of banks in the program. She then moves to a thorough analysis of the program's financial performance and assesses the impact of SBA loans on banks. Subsequent chapters examine the cost of the program to the SBA, the social goals of the program and how well it fulfills them, and the changes made in the program during the 1980s to improve its management efficiency. The final chapter explores policy changes that could improve the program's overall performance and offers recommendations for reform ranging from minor management improvements to major program restructuring. A landmark critique of a major governmental program and its impact on the business community, this book should be read by every banker, small business owner, and legislator with an interest in the fate of the SBA loan guarantee program, or in the government's role in credit allocation.
Author: United States. Small Business AdministrationPublish On: 1973
The plans benefit the banks and other participating institutions , the small businesses to which loans are made , their ... In the case of a guaranteed loan , SBA may not guarantee more than 90 percent of the outstanding balance of the ...
Author: United States. Small Business Administration
Author: United States. Congress. House. Committee on Small Business. Subcommittee on Tax, Access to Equity Capital, and Business OpportunitiesPublish On: 1982
When the prospective borrower lacks experience , is under capitalized , has little or illiquid collateral , or requires a longer payment period than the average loan , a guarantee by the SBA permits a bank to offer a small business more ...
Author: United States. Congress. House. Committee on Small Business. Subcommittee on Tax, Access to Equity Capital, and Business Opportunities
Author: United States. Congress. House. Committee on Small Business. Subcommittee on SBA and SBIC Authority, Minority Enterprise, and General Small Business ProblemsPublish On: 1985
American Pacific State Bank is a member of the National Association of Government - Guaranteed Lenders , which is also a trade group representing many lenders and many of the major SBA loan guarantee programs , and we strongly endorse ...
Author: United States. Congress. House. Committee on Small Business. Subcommittee on SBA and SBIC Authority, Minority Enterprise, and General Small Business Problems
SBA Loan Guarantees For a loan guarantee , the SBA works with a bank to provide a guarantee of up to 90 percent for the loan made to the small business . Consequently , it is the commercial bank that makes the loan .
Author: Dennis Kondo
Publisher: University of Hawaii Press
Category: Business & Economics
Written in easy-to-understand language, Business Basics in Hawaii introduces the lay person to some of the basic principles of business. Readers benefit from lessons learned by other business people through an examination of two hypothetical companies. Some of the topics covered include estimating market potential and monthly operating costs, planning an advertising campaign with local media, negotiating a lease, and reviewing some Hawaii business tax laws.
Author: United States. Congress. House. Committee on Small BusinessPublish On: 1987
The SBA Loan Guarantee Program is a very real factor in enabling commercial banks to assist all small businesses , but especially new startup companies that desperately need long term financing . The ABA has consistently supported the 7 ...
Author: United States. Congress. House. Committee on Small Business
-40Achieving guarantees in C. SBA Impact upon Bank Lending Behavior assurances of this study , a SBA loans and guarantees are supposedly available only to those business adm firms who could not otherwise obtain loan funds at reasonable ...
Author: United States. Congress. Senate. Committee on Small Business. Subcommittee on Export Promotion and Market DevelopmentPublish On: 1983
Administrative expenses of MEFA loan guarantees will be met with appropriations from the general revenue fund . ... discussions with the Eximbank and the the Minnesota District Office of the the Small Business Administration .
Author: United States. Congress. Senate. Committee on Small Business. Subcommittee on Export Promotion and Market Development
Author: United States. Congress. House. Committee on Small Business. Subcommittee on General OversightPublish On: 1982
We will hear that the SBA loan guarantee reduces the element of risk and provides an incentive for the bank to lend to small businesses and help their communities . We will hear how the SBA guaranteed loan program has provided an ...
Author: United States. Congress. House. Committee on Small Business. Subcommittee on General Oversight
Author: United States. Congress. HousePublish On: 1965
In order to entice banks , SBA sold these loans on a 90 - percent guarantee payoff basis . ... That means that if SBA sold a loan to a bank and the small business concern а . defaulted on that loan SBA would reimburse the bank for 90 ...