Loan Financing as a Tool for Nonincumbent House Candidates

Anne E. Baker

Social Science Quarterly, 2021, vol. 102, issue 4, 1466-1483

Abstract: Objective More than 50 percent of nonincumbent candidates competing in each of the 2010–2016 election cycles for seats in the House used loans to supplement their campaign revenue streams but their use remains understudied. Method Using both summary and quarterly campaign reports from the U.S. Federal Election Commission 2010–2016, I examine the frequency, timing, and the types of loans utilized by nonincumbent House campaigns. I investigate which candidate characteristics and conditions lead to loan financing. And in a matching analysis, I test the impact of loaning financing at different points in time on inexperienced nonincumbent House candidates’ competitiveness. Results I find loan financing in the primary election has a greater positive impact on inexperienced House candidates’ vote margins than loan financing later in the election cycle. Conclusion The results suggest a number of best practices for nonincumbent candidates’ use of loans.

Date: 2021
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