Princeton University Library Catalog

Startups! An Empirical Analysis of the Small Business Administration’s 7(a) Loan Guarantee Program

Author/​Artist:
Bajpayee, Neeraj [Browse]
Format:
Senior thesis
Language:
English
Advisor(s):
Moll, Benjamin [Browse]
Department:
Princeton University. Department of Economics [Browse]
Class year:
2017
Summary note:
This paper examines the impact of the Small Business Administration’s 7(a) Loan Guarantee program on local economic outcomes, and compares the growth impacts against private lender financed entrepreneurship. I find that OLS estimates indicate a statistically significant and positive, but economically small, effect on establishment and employment count from 2000-2014. I find that SBA lending disproportionately increases the number of establishments relative to commercial bank lending. I further find that 7(a) loans significantly increase the number of establishments that employ 1-4 individuals, while its effects on larger establishments are not statistically significant.