Rural Businesses That Receive USDA Business and Industry Guaranteed Loans Less Likely To Fail

Anil Rupasingha and John Pender ()

Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, 2019, vol. September 2019, issue 08

Abstract: USDA implements several loan and grant programs to support rural businesses. Of these, the Business and Industry (B&I) Guaranteed Loan Program is the largest, with a program level of $892 million (the total value of all loans given under the program) in 2017. By reducing lenders’ risk, the B& I program encourages them to provide more generous terms or larger principal amounts, or to approve loans to rural businesses that they otherwise would not make. ERS researchers found that receiving a B&I loan reduced the risk of business failure, although this effect dropped with time.

Keywords: Agribusiness; Agricultural Finance; Community/Rural/Urban Development; Financial Economics; Institutional and Behavioral Economics (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/302871/files/U ... kely%20To%20Fail.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersaw:302871

DOI: 10.22004/ag.econ.302871

Access Statistics for this article

More articles in Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().