Small Business, Banks, and SBA Loan Guarantees: Subsidizing the Weak or Bridging a Credit Gap?

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"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

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