Week 6

bemp1130

additionalreadingwk6.docx

Home >Business & Finance homework help >Operations Management homework help >Week 6

FINANCING FOR SMALL BUSINESS IN A SLUGGISH ECONOMY VERSUS CONFLICTING IMPULSES OF THE ENTREPRENEUR

Geho, Patrick R ; Frakes, Jamie . The Entrepreneurial Executive ; Arden Vol. 18, (2013): 89-101.

1. Full text

2. Full text - PDF

3. Abstract/Details

Abstract

Translate

Top of Form

Bottom of Form

The start of what is now termed the "Great Recession" began in December 2007 and statistically ended in June 2009, yet small businesses continue to struggle financially in 2012. Entrepreneurial activities for the most part are dependent upon the availability of financing. Access to capital remains a serious problem for entrepreneurs in this sluggish economy. Even when credit is available to qualified small businesses many avoid pursuing financing. This could be contrary to the wellbeing of the enterprise. In this regard common sense can take a backseat to the entrepreneur's stress and strain psyche. The purpose of this research paper is to provide information to practicing entrepreneurs with regard to the impact economic contractions can have on businesses and how they cope and survive. Do small businesses by and large have access to capital? If capital is available for small business lending are entrepreneurs taking advantage of the opportunity to borrow? What steps have been taken by federal and state governments to make it conducive for small business to borrow? Does increasing the availability of financing for small businesses create a sufficient inducement for small businesses to borrow to grow their business during uncertain economic times? Is bootstrapping an option? [PUBLICATION ABSTRACT]

Full Text

Translate

Top of Form

Bottom of Form

Headnote

ABSTRACT

The purpose of this research paper is to provide information to practicing entrepreneurs with regard to the impact economic contractions can have on businesses and how they cope and survive. Do small businesses by and large have access to capital? If capital is available for small business lending are entrepreneurs taking advantage of the opportunity to borrow? What steps have been taken by federal and state governments to make it conducive for small business to borrow? Does increasing the availability of financing for small businesses create a sufficient inducement for small businesses to borrow to grow their business during uncertain economic times? Is bootstrapping an option?

INTRODUCTION

Small businesses continue to face challenging times as the nation's economy struggles to improve. Even so optimism among small business owners is on the rise. More than half (56%, up from 48% last fall) have a positive outlook on business prospects over the next six months. In spite of the promising outlook, these signs of recovery do not translate into immediate plans for growth. The top priority of small business owners at this time is maintaining their current business and sources of revenue (31%) followed closely by growing their business (29%, down from 37% last spring) (The American Express OPEN® Small Business Monitor, 2012). The flat economy, reduced business equity values and the resulting impact to credit and collateral has made capital formation for small businesses through bank financing difficult to obtain. During this time of economic uncertainty many small businesses that would meet bank lending criteria and could use the additional capital chose not add additional debt to their balance sheet. Those entrepreneurs believe they have few options for their business and are just trying to maintain the status quo.

RESEARCH

In order to determine if access to capital was the predominant issue for small businesses during this current weak economy, Middle Tennessee State University's Tennessee Small Business Development Center (TSBDC) and Center for Organizational and Human Resource Effectiveness (COHRE) conducted a phone survey of small business in the state of Tennessee. The survey was developed to investigate which Tennessee small businesses are obtaining business financing, what differences exist between Tennessee small businesses that receive financing and are denied financing, and which banks are lending to small businesses in Tennessee.

METHODOLOGY

To conduct the survey, COHRE obtained a list of business contacts from Info USA. The contact list was restricted to small businesses operating in the state of Tennessee, which TSBDC defined as businesses with less than 500 employees that earned annual revenue of less than $10 million. The TSBDC and COHRE developed a 40-question survey, which inquired about a business's financing over the previous twelve months. The survey was developed using queries posed by TSBDC and questions from the U.S. Small Business Administration's (SBA) 2003 Survey of Small Business Finance. The survey was piloted on a select few small business owners known to COHRE employees.

Over the course of the survey development and administration, five phone survey administrators were hired and received identical training on survey administration, small businesses and the history of TSBDC. While conducting the survey, phone survey administrators followed a branching script adapted from the script used in the SBA' s 2003 Survey of Small Business Finance.

RESULTS

Of the businesses contacted, 89 chose to participate in TSBDC's small business finance survey. Of these 89 participating businesses, only 14 businesses indicated they had applied for loans in the twelve months prior to being surveyed, and of these 14 loan applicants, 11 businesses were granted loans by 1 1 different banks. Business pessimism is driving borrowing decisions. In fact, 60% of the respondents indicated they did not want to apply for financing which is similar to the 56% of respondents in the American Express OPEN® Small Business Monitor (2012) survey who have no immediate plans for growth. Businesses are taking a wait and see approach due stricter bank lending criteria coupled with the poor economy in general.

DEMAND FOR CREDIT VERSUS ACCESS TO CAPITAL

Reduced bank lending coupled with small business loan defaults sets the stage for tightened lending standards. As a result, small businesses have found it difficult to secure loans. At the same time, many bankers have reported weak demand from qualified small business borrowers. Businesses with weak sales or poor prospects are more likely to cut back rather than expand their business, thereby reducing demand for credit (Wilkinson & Christensson, 201 1).

A National Federation of Independent Business (NFIB) survey showed that "weak sales" is the biggest concern for 27% of small business respondents, while only 3% of respondents report financing as the biggest problem (National Federation of Independent Business, 201 1).

A broad lack of confidence in the economy has borrowers backing away from new debt (Thomson Reuters PayNet Small Business Lending Index 2012). According to the PayNet study lending to small businesses has recently slowed:

The data definitively shows that demand for credit remains weak. This finding proves that business owners remain cautious about the economic recovery so much so, that they are forgoing expansion and hunkering down by placing more cash in the bank, rather than expanding property, plant and equipment.

Application levels show that demand for credit remains tepid:

* Credit applications peaked in October 2008, when they rose to all-time highs.

* During the recession, applications fell 30% by January 20 1 0.

* Applications for credit remain weak, at about the same level as during the recession.

Market share by lender type shows competition heating up for the little credit demand that exists:

* Bank market share of lending grew most during 2007-2009.

* In 2010 the captive finance companies started to get more aggressive and took a bigger share of the pie as new originations grew 5% overall in 2009-2010 but shrank 2% for banks.

* Now independent finance companies are stealing market share from banks as their originations grew 39% in 2011 while the overall growth was only 17%.

* "With 2012 business defaults projected to be lower than at any time since 2006, lenders are responding with easier credit terms to reflect this lower risk. The conundrum is that with risk and interest rates this low, small business is still cautious about taking on more credit" (Phelan, 2012).

According to the NFIB - Quarterly Survey, 1 in 4 business owners viewed the current economy as a bad time to expand with 60% indicating that political uncertainty being the main reason, second only to business concerns about the weak economy. Investing in jobs or plant and equipment will remain at maintenance levels until this is resolved. The survey shows that companies aren't confident enough to take on debt or new employees (NFIB, 2012).

The Federal Reserve Bank (FRB) of Atlanta conducts surveys of small business contacts in the Southeast to get their perspective on general business and credit conditions. According to their most recent survey of 293 small businesses, 1 10 applied for credit, leaving 183 firms who chose not to apply for credit. The study does not explain why these firms did not apply for credit but it can be reasoned that economic uncertainty was a contributing factor as much or more than credit worthiness (Federal Reserve Bank of Atlanta Small Business Survey, 201 1).

Applying firms submitted three applications on average, and 37% had their overall financing needs met in full. A further 21% indicated they received most of the amount requested. In total of the 110 firms who applied for bank financing, 58% received funding at some level. Firms that were five years old or younger and firms in the construction and real estate industry were less likely to have their credit needs met (FRB, 201 1).

THE EVOLUTION OF TARP AND GOVERNMENT FINANCING INITIATIVES FOR SMALL BUSINESS LENDING

The American Recovery and Reinvestment Act (ARRA) of 2009 was the signature postTroubled Asset Relief Program (TARP) federal legislation designed to incentivize growth and development within the private sector. Prior to this landmark legislation TARP was the primary government incentive offered to the private sector during a time when the economy experienced tepid growth. According to the Government Accountability Office (GAO), TARP restored faith in banking institutions by investing federal dollars into programs designed to shore up losses of banking assets, while providing a foundation for private firms to access capital that was necessary for generating economic growth. The Department of the Treasury and the Federal Reserve System created this program in order to benefit consumers by increasing access to credit for small businesses (Government Accountability Office, 2009, p.39). According to the American Bankers Association (ABA), TARP has restored stability in the financial system and participating banking institutions have repaid $264 billion in principal and interest payments to the federal government. This represents a $19 billion positive return to the American taxpayer based on the initial $245 billion that was invested in TARP (American Bankers Association, 2012, p.l) TARP was designed to purchase troubled banking assets, thereby creating an environment where lenders would consider capital needs of small business owners who might have been on the bubble in receiving a traditional commercial financing product. Even after TARP funds were offered to large and small financial institutions, lending continued to be slow. Many of the financial institutions that received TARP funds did not initially increase the number of loans in their portfolio. In fact, the ABA reported that banks in local weak economies experienced slower repayment and investment of TARP funds than larger banks where the businesses were holding their own in a weak economy. In fact, the ABA reported that banks in weaker local economies experienced slower repayment of TARP funds than larger banks in urban areas where the economy realized modest improvements. Slower than expected economic growth combined with weakened loan portfolios stifled the ability of smaller rural community banks to make capital readily accessible to entrepreneurs.

After further examination results seem to suggest that the larger, urban financial institutions have been more effective using TARP funds to purchase troubled assets and improve access to capital to its business clientele than their rural counterparts in the smaller, regional community banks. This is due in part to the economic improvements in urban population centers compared to the slowly recovering, weaker rural economies (ABA, 2012).

Where TARP provided initial incentives to invest in large industries directly, or by providing stability to the struggling financial sector, ARRA was to become a catalyst for providing access to capital to small businesses through traditional lenders, SBA, and certified development companies. As stated by the GAO there were 8 primary requirements that established the basis for federal incentives to small firms in the private sector (GAO, 2009, p.78). Those provisions were:

1) Provision 501 - fee reductions. Permits the temporary reduction or elimination of fees for 7(a) and 504 loans until September 30, 2010, or until funds appropriated are expended ($375 million total for both sections 501 and 502).

2) Provision 502 - economic stimulus lending program. This permits SBA to guarantee up to 90% of qualifying 7(a) loans made by SBA lenders. This provision only applies to loans approved within 12 months of ARRA enactment or until all funds appropriated are expended.

3) Provision 503 - Establishment of SBA secondary market guarantee authority. Allows SBA to establish a secondary market guarantee for pools of first-lien 504 loans to sell to third-party investors. This provision terminates 2 years after the enactment of the ARRA.

4) Provision 504 - Stimulus for community development. Authorizes SBA to refinance a limited number of certain existing loans as new 504 loans. The criterion for the 504 loans has changes from creating one job for every $50,000 guaranteed to one job for every $65,000 guaranteed.

5) Provision 505 - Increasing small business investment. Increases the maximum amount of outstanding leverage available to a small business investment company (SBIC) to the lesser of 300% of the SBIC's private capital or $150 million.

6) Provision 506 - Business stabilization program. Creates a new program that allows SBA to guarantee loans of $35,000 or less to small businesses suffering immediate financial hardship and possess existing loans.

7) Provision 508 - Surety bonds. Increases the maximum contract amount for a SBA bond guarantee from $2 million to $5 million, in some cases as much as $10 million.

8) Provision 509 - Establishment of SBA secondary market lending authority. Primary requirements authorize broker-dealers that operate in the SBA 7(a) secondary market.

The incentives provided through these 8 provisions of ARRA do not represent the entire federal package of incentives provided to improve the economy. Other incentive programs address energy efficiency, defense contracting, and business & industry loan guarantees in other federal departments. ARRA's 8 provisions were the primary vehicle for promoting access to capital for small businesses, along with encouraging investment in the secondary loan markets. Each of these provisions offered an incentive to small firms in the private sector. All of the provisions provided a comprehensive menu of incentives that collectively, were designed to spur economic growth in the economy with access to capital as the vehicle for this process.

Data reported in the first quarter of 2010 suggests that the 7(a) and 504 loan markets had shown a recovery based on earlier numbers from the fourth quarter of 2008. The GAO report stated that 7(a) loans in the primary market doubled from an average of $650 million per month in the fourth quarter of 2008 to an average of about $1.4 billion per month in the third quarter of 2009 (GAO, 2010). These figures were higher than the average for the second and third quarters in 2008, and this suggests there is some evidence that the ARRA prescription for improving the markets for 7(a) and 504 loan products did improve. Sales for 7(a) loans on the secondary market tripled between the fourth quarter of 2008 and the third quarter for 2009.

According to the GAO there was a significant recovery in the markets for 7(a) and 504 loans throughout 2009 (GAO, 2010). The reasons for this recovery were attributed to the temporary elimination of fees on 7(a) and 504 loans. In addition, many participants in these programs referenced the credit market improvement as reasons for overall economic improvement. The Department of the Treasury cited the previous existence of TARP as a viable incentive as one reason for increased investor confidence in an already slow economy.

Another incentive the federal stimulus offered under the general provisions of ARRA was the America's Recovery Capital (ARC) loan program. Initially this loan program was off to a slow start. Many participants cited the small size of the loan amounts with a maximum of $35,000, the high costs associated with processing the loans, and SBA's stringent program requirements as the reason why this program did not get off to a great start. Others cited the confusion by bankers on the eligibility requirements and the definition of a viable business under the loan program provisions. However, most participants overcame these obstacles because by the end of the third quarter of 2009 approximately 2,904 ARC loans, totaling $94 million, were appropriated to address the new found demand for this loan product.

SBA's Small Loan Advantage (SLM) program provides access to capital for small businesses in underserved markets. The SLM is structured to encourage larger, existing SBA lenders to make lower-dollar loans, which often benefit businesses in underserved markets. Banks can finance loans up to $350,000 with an 85 % SBA loan guarantee on loans up to $150,000 and 75 % loan guarantee on loans greater than $150,000. SBA claims some loans can be approved in minutes while others can be approved in 5 to 10 days. The loan application is only two pages. SBA's loan guarantee programs have played a major role in sustaining and growing businesses during this period of economic stagnation. "SBA provided federal loan guarantees of more than $79 billion to more than 150,000 small businesses since 2009" (Butts, 2012).

Although SBA successfully incentivized small business lending under the federal stimulus plan by eliminating loan guarantee fees and increasing the loan guarantee amount to 90%, those incentives are no longer available. However, SBA has increased the 7(a) loan limit from $2 to $5 million, which went into effect with the Small Business Jobs Act of 2010 (the Jobs Act). The Jobs Act also directed the U.S. Department of the Treasury to make capital investments in eligible institutions to provide for increased access to credit for small business. An investment fund was created called the Small Business Lending Fund (SBLF). The SBLF provided $4 billion to qualified community banks, non-profit community development lenders, thrifts and bank holding companies with assets of less than $10 billion. According to the GAO, 332 banks with over 3,000 locations in 48 states have taken advantage of this stimulus program with 68% increasing their small business lending by 10% (GAO, 201 1).

The SBLF funding to banks is incentivized through an interest rate payable on the SBLF capital from 7% to as low as 1% based on the level of a bank's participation in the program. For non-profit lenders capital cost is 2% as these banks play a vital role in small business financing in distressed communities.

The SBLF Treasury program has been successful to a point based on the amount on increased small business lending by SBLF banks in comparison to banks who either do not meet the eligibility criteria to participate in the SBLF program or banks that otherwise elected not to participate in this Treasury program. According to the SBLF Program Reports the overall increase in business lending through SBLF banks was 2 1 .5% over previous year baseline levels as compared to non-SBLF banks whose business lending increased only 1.1%. Unfortunately of the $4 billion that was intended to be made available to banks for business lending only 1.8% was actually loaned out. The other $2.2 billion went to banks to pay off their Troubled Asset Relief Program (TARP) obligations (Maltby & Loten, 2012). SBLF banks make the case that paying off their TARP obligations freed up capital for lending. Nevertheless, the banks did not make the number of loans to businesses as was originally anticipated under the program.

Small businesses are also able to secure competitive financing indirectly through the U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI) funded by the Small Business Jobs Act of 2010. Under the SSBCI participating states will use the federal funds for programs that leverage private lending to help finance small businesses that are creditworthy, but are not getting the loans they need to expand and create jobs. States are required to demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding. Accordingly, the $ 1 .5 billion funding commitment that the federal government has made for this program is expected to support $15 billion in additional private lending (U.S. Department of the Treasury State Small Business Credit Initiative, 2011). For example the California Small Business Loan Guarantee Program's State Assistance Fund for EnterpriseBusiness and Industrial Development Corporation - SAFE-BIDCO offers lender flexibility and lower guarantee costs. This program differs from federal loan guarantee products by permitting lenders to negotiate interest rates and allows in-house underwriting, all while also reducing paperwork to make the loan guarantee (Gneckow 2012).

Small business owners whose business is located in a county of less than 50,000 population can take advantage of the U.S. Department of Agriculture's Business and Industry (B&I) Loan Program to finance fixed assets and working capital. The B&I program is similar to SB A' s in that federal loan guarantees are provided to banks as an inducement to finance businesses. Total amount of B&I loan to any single borrower is $10 million with special exceptions requiring approval by the U.S. Department of Agriculture's administrator. Loans for real estate can go out to 30 years; machinery and equipment 15 years or the useful life whichever is the lesser; and working capital to 7 years. Interest rates are negotiated between the bank and borrower (U.S Department of Agriculture Business and Industry Loan, 2012).

BOOTSTRAPPING AS AN ALTERNATIVE TO CONVENTIONAL FINANCING

No longer can an entrepreneur go to their local bank and seek additional capital for their enterprise based on a handshake, family goodwill, and promise to do well in a struggling marketplace (Mount, 2012). Success in the business world is predicated on success in obtaining the financial resources necessary to establish and grow a solid business. The concept of "bootstrap financing" provides alternatives to accessing capital necessary to insure the business enjoys sustainable growth during times of prosperity and slow economic growth (Neeley & Van Auken, 2009, p.400). Timing is a key factor that can determine a business owner's level of success accessing needed capital. Obtaining financing is not done in real time. A business' internal management structure and strategies for retiring debt can cause some time challenges when it comes to accessing capital (Neeley & Van Auken, 2009, p.400). Lending institutions in the past could help with immediate capital needs or a simple line of credit to assist a business based on reputation. However, the stringent regulations tied to lending practices and usage of many federal incentive programs have caused business owners to consider "bootstrap" methods to access capital. Some of these "bootstrap" methods for financing are more expensive than traditional bank loans (Mount, 2012). However, business owners who need timely access to capital, in lieu of any federal incentives through guaranteed loans, have shown a willingness to take on additional debt service to access these loan products.

There are five basic forms of "bootstrap" financing that are used by small business owners and entrepreneurs to access capital. These basic methods are: 1) asset-based lending, 2) lease back, 3) cash advances, 4) nonbank loans, and 5) peer-to-peer loans.

Asset-based loans are one method where companies sell a considerable value of their receivables or invoices, as much as 80% to 90%, to a factoring company until these invoices are paid off. This allows a small business the opportunity to leverage financing by using purchase orders, contracts, or inventory as collateral to access the capital to sustain the business during times when quick turnaround on payment is absolutely necessary. Creditworthiness is the most important characteristic of a business that uses this type of financing method because a business' ability to leverage this product is determined by their ability to pay and not on the solvency of the lender (Mount, 2012).

Lease-back financing allows a venture to sell its real property and equipment at a healthy market price then lease it back from the purchaser for a significant length of time, usually between 10 and 25 years. This is a very healthy method for accessing capital for businesses that have a high investment in real property, warehousing, and equipment. Businesses will be responsible for a monthly lease payment in lieu of any loan payment that would be required to access this type of product.

A cash advance is a "bootstrap" method used by ventures that do not have wholesale invoices or real property they can leverage financing against. A cash lump sum is provided to the borrower to address capital needs. In turn the lender receives a percentage of daily receipts the business, plus a fee, until the debt on the cash advance is serviced (Mount, 2012).

Nonbank loans are offered by finance companies to seasonal-type businesses that do not have the financial wherewithal to meet a traditional lender's requirements. The method of financing helps small business ventures who get their loans called in during times when they need capital in a timely manner to maintain business operations. Usually the finance company received anywhere between 2% and 8% of the borrower's revenue. This can be costly because fees for nonbank loans can approach anywhere between 18% and 36% over a 12 month period.

Peer to peer loans are similar to angel investors. Small business owners provide financing to an upstart company based on the level of need and the creditworthiness of the borrower. Usually the money is used to purchase additional equipment or expand into new markets. This method too, can be an expensive proposition to an upstart business venture. Loans can range from 7% to 25% depending on the borrower's creditworthiness and the business' prospective growth (Mount, 2012).

Timeliness and creditworthiness impact a business owner's decision as to how they will access capital and which financing product they consider as they grow their business. Government loan guarantees and other incentives present a good intervention that encourages the flow of capital into small business ventures (Li, 1998). Whether it is a guaranteed loan or private financing, this enables the venture to increase its workforce, increase sales through higher production capacity, and make additional investments that will drive a recovering economy. Bootstrap methods of financing present some alternatives to accessing capital as well. There are significant costs differences between federal incentives and some of the bootstrap financing. These factor into consideration as a small business owner faces economic uncertainty during slow times. Whether through traditional commercial loan products, bootstrap methods of financing, or utilizing government incentives, it is certain that survival of small firms depends on the ability of a small venture to access capital in a timely and cost-effective manner (Neeley & Van Auken, 2009).

CONCLUSION

It is apparent that business pessimism about the state of the national economy is playing a bigger role in business decision making to avoid additional debt than is a lack of access to capital as the reason not to grow the business. Hints of patterns in the data emerged in this regard during analysis of the TSBDC - COHRE research discussed within.

There is ample evidence that federal incentives under the AARA generated economic growth through greater access to capital. The increase in SBA guarantee to lenders to 90% and the elimination of fees, generated interest in lending and business borrowing. Access to capital with very appealing terms and conditions did create demand for capital by the small business community. However, many of those stimulus initiatives have since ended and the credit markets with few exceptions have tightened for smaller firms. Businesses are again weighing the benefits of borrowing versus their pessimism over the state of the economy.

The National Small Business Association (NSBA) recently surveyed small business owners in an effort to understand why capital was harder to obtain. "Nearly one in three (29 %) of small-business respondents report that, in the last four years, their loans or lines of credit were reduced. Perhaps even more concerning - nearly one in 10 had their loans or lines of credit called in early by the bank" (National Small Business Association, 2012, p.2). The reason most cited by banking institutions for reducing credit lines of their small business customers was due to internal risk assessment. According a recent NSBA survey only 4% of those surveyed used SBA loan guarantees in the past 12 months (NSBA, 2012, p.4). SBA research also points to more stringent internal compliance issues involving the lender rather than low demand for loan funds. However, the recent reduction in demand for SBA loan guarantees is more likely than not attributable to the impact of the sunset of the AARA. The SBA loan guarantee program provisions under the AARA, which eliminated fees on SBA 7(a) and 504 loans as well as the decrease in the loan guarantee portion from 90% down to 75% created demand by small business for credit. Small business owners and lenders did not find it as appealing to seek SBA guaranteed loans once the stimulus provisions were no longer available.

Inconsistencies in the availability and duration of government stimulus related financing for small businesses has given entrepreneurs another reason to pull-back and reconsider growing their enterprise during a weak national economy. In order to have a sustainable positive economic impact on small business growth, stimulus programs must be available until improvements in the economy make such stimulus no longer necessary. Short term actions by government to buoy business growth during a long period of economic recession and slow recovery are counterproductive.

References

REFERENCES

American Bankers Association. (2012, May). TARP Bank Programs Have Been Paid Back in Full: Bank Programs: $245 Billion Invested; $264 Billion Repaid. Retrieved from ht^://www.aba.com/aba/documents/blogs/BanksEconomy/May2012TARRBankProgramsHaveBeenRepaid inFull.pdf

American Bankers Association. (2012, March). Business Lending Shows Strong Increases as Economic Outlook Brightens: Uncertainty Keeps Borrowers Wary of Adding Debt. Retrieved from ht^://www.aba.com/aba/documents/blogs/BanksEconomy/SmallBusinessLendingPieceMar2012.pdf

American Express OPEN® Small Business Monitor, spring (2012). Retrieved from http://media.nucleus.naprojects.com'pdf/Spring%202012%20Monitor%20Release%20-%20FINAL%20%20OF%20Formatted%20version.pdf

Born, J. (2012, June 4) PayNet Credit Application Indicator Validates Sluggish Demand -Demand for Credit Is Available if Businesses Want It. Retrieved from http://www.paynetonline.eom/i mages/stories/PressReleases/paynetcreditapplicationindicator_6.04.2012.pdf

Butts, C. (2012, June) SBA Provides More Access and Opportunities. Retrieved from http://www.sba.gov/aboutoffices-content/3/3073/resources/l 5500 1

Federal Reserve Bank of Atlanta Small Business Survey, Third Quarter (2011). Retrieved from ht^://www.frbatlanta.org/documents/research/smallbusiness/sbresearch/l lq3_survey.pdf

Government Accountability Office, (2009, June). Troubled Asset Relief Program - June 2009 Status of Efforts to Address Transparency and Accountability Issues. Retrieved from http://www.gao.gov/new.items/d09658.pdf

Government Accountability Office, (2009, April 16). Small Business Administration's Implementation of Administrative Provisions in the American Recovery and Reinvestment Act of 2009. Retrieved from http://www.gao.gov/assets/100/96063.pdf

Government Accountability Office, (2010, January 19). Status of the Small Business Administration's Implementation of Administrative Provisions in the American Recovery and Reinvestment Act of 2009. Retrieved from http://www.gao.gov/products/GAO-10-298R

Gneckow, E. (2012, August 6). More Small Businesses Find Financing in State Guarantee Program. North Bay Business Journal. Retrieved from http://www.northbaybusinessjournal.com/58917/more-small-businessesfind-financing-in-state-guarantee-program/

Li, W. (1998). Government Loan, Guarantee, and Grant Programs: An Evaluation. Federal Reserve Bank of Richmond. Economic Quarterly, 84 (4): 25.

Maltby, E. & Loten, A. (2011, October 20). The Tale of Two Loan Programs. The Wall Street Journal. Retrieved from http://online.wsj.com/article/ SB10001424052970204138204576603100469929700.html? mod=dist_smartbrief

Mount, I. (2012, August 2). Small-Business Guide; When Banks Won't Lend, There Are Alternatives, Though Often Expensive. The New York Times. Retrieved from http://query.nytimes.com/gst/ fullpage.html?res=9503E3D61230F931A3575BC0A9649D8B63&scp=l&sq=&st=nyt&pagewanted=print

National Federation of Independent of Independent Business Research Foundation quarterly survey, (2012, May). Retrieved from http://www.nfib.com/research-foundation/surveys/small-business-economic-trends

National Federation of Independent Business, (2010, February). Small Business Credit in a Deep Recession. Retrieved from http://www.nfib.eom/Portals/0/PDF/ AllUsers/research/studies/Small-Business-Credit-In-aDeep-Recession-February-20 1 0-NFIB .pdf.

National Small Business Association, (2012, July). Small Business Access to Capital Survey. Retrieved from http://www.nsba.biz/wp-content/uploads/2012/07/Access-to-Capital-Survey.pdf

Neeley, L, & Van Auken, H. (2009). The Relationship Between Owner Characteristics and Use of Bootstrap Financing Methods. Journal of Small Business and Entrepreneurship, 22(4), 399-412.

Phelan, B. (2012, April 1 1). Small Business Confidence Shrinks Over Economic Fears. Wall Street Daily. Retrieved from http://www.wallstreetdaily.com/20 12/04/1 1/video-small-business-confidence/

U.S. Small Business Administration Advantage Loan Initiatives (2011, February). Retrieved from http://www.sba.gov/content/advantage-loan-initiatives

Thomson Reuters PayNet Small Business Lending Index, (2012, April). Retrieved from http://thonisomeuters.com/products_services/financial/thomson_reuters_indices/indices/economic_indicato IB/

U.S Department of Agriculture Business and Industry Loan, (2012). Retrieved from http://www.rardev.usda.gov/rbs/busp/b&i_gar.htm

U.S. Department of the Treasury SBLF Program Reports (2012, April). Retrieved from http://www.treasury.gov/resource-center/sbprograms/Documents/April%202012%20SBLF%20UF%20Report%20-%20for%20web.pdf

U.S. Department of the Treasury State Small Business Credit Initiative (2011, January). Retrieved from http://www.treasury.gov/press-center/press-releases/Pages/tgl025.aspx

Wilkinson, J., & Christensson, J. (2011). Can the Supply of Small Business Loans Be Increased? Economic Review -Federal Reserve Bank of Kansas City, 35-57. Retrieved from ht^)://ezproxy.mtsu.edu/login?url=http://search.proquest.com.contentproxy.phoenix.edu/docview/900096445?accountid=4886

AuthorAffiliation

Patrick R. Geho, Middle Tennessee State University

Jamie Frakes, Dyersburg State Community College

Word count: 5275

Top of Form

Search ProQuest...Search button

Bottom of Form

Download PDF

Cite

Save

Add to Selected items

· Cited by (30)