AN EMPIRICAL EXAMINATION OF SBA GUARANTEED LOANS: RATES, COLLATERAL, AGENCY COSTS, AND THE TIME TO OBTAIN THE LOAN

We empirically examine a sample of over 350 entrepreneurial firms that successfully receive an SBA guaranteed loan. The first portion of the paper contains descriptive statistics that lend anecdotal evidence concerning the organization type of borrowers, the incidence of collateral, the reasons for...

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Bibliographic Details
Published inThe journal of entrepreneurial finance Vol. 6; no. 1; p. 1
Main Authors Brau, James C, Osteryoung, Jerome S
Format Journal Article
LanguageEnglish
Published Greenwich Pepperdine University, Graziadio School of Business and Management 01.12.2001
Subjects
Central banks
Collateral
Cost control
Entrepreneurs
Financial institutions
Government agencies
Guaranteed loans
Lines of credit
Multivariate analysis
Small business
Small business loans
Studies
Variables
United States > US
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Summary:We empirically examine a sample of over 350 entrepreneurial firms that successfully receive an SBA guaranteed loan. The first portion of the paper contains descriptive statistics that lend anecdotal evidence concerning the organization type of borrowers, the incidence of collateral, the reasons for choosing the financial institution in which the SBA loan is secured, the main purpose for the SBA loan, and alternative actions that would have been undertaken had the SBA guaranteed loan not been obtained. The second portion of the paper poses theoretical predictions and tests them via multivariate models. Issues that are considered include the number of days required to obtain the SBA loan, management assistance services, agency theory, interest rate determinants, and collateral determinants.
ISSN:2373-1753
2373-1761
DOI:10.57229/2373-1761.1198