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Key Findings from the Evaluation of the Small Business Administration’s Loan and Investment Programs

The Urban Institute is a nonprofit, nonpartisan policy research and educational organization that examines the social, economic, and governance problems facing the nation. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

The Small Business Administration (SBA) recently commissioned the Urban Institute (UI) to evaluate four programs, including the 7(a) Loan Guaranty Program, the Certified Development Company (CDC) 504 Loan Program, the Small Business Investment Company (SBIC) Debentures Program, and the MicroLoan Program. This effort was intended to help SBA assess past performance of the designated programs, as well as to test methodologies that can assist the agency in setting meaningful goals/targets as benchmarks for future accomplishments.

CONTENTS
I. INTRODUCTION

    POLICY AND RESEARCH QUESTIONS
    DESCRIPTION OF EVALUATED PROGRAMS
      Section 7(a) Loan Guaranty Program
      Certified Development Company (504) Loan Program
      MicroLoan Program
      Debenture Small Business Investment Company (SBIC) Program

II. DOES SBA ASSISTANCE HELP THE FIRMS THAT RECEIVE IT?

    METHODOLOGY
      Performance Analysis Methodology
      Assisted Business Survey Methodology

    FINDINGS

      Performance Analysis of SBA’s Loan and Investment Programs
      Survey of Assisted Businesses

III. TO WHAT EXTENT DOES THE SBA SERVE ITS MARKET?

    METHODOLOGY
      Factors Used to Ensure Borrowers Meets Credit Elsewhere Requirement
      7(a) and 504 Gap Analysis
      Debenture SBIC Comparative Analysis

    FINDINGS

      Factors Used to Ensure Borrowers Meets Credit Elsewhere Requirement
      7(a) and 504 Gap Analysis
      Debenture SBIC Comparative Analysis

IV. DO SBA PROGRAMS DUPLICATE OR OVERLAP WITH OTHER PUBLIC SECTOR PROGRAMS?

    METHODOLOGY
    FINDINGS

IV. CONCLUSIONS AND POLICY IMPLICATIONS
REFERENCES
APPENDIX A: PERFORMANCE ANALYSIS MEASURES

    Financing Characteristics
    Market Characteristics

Downlaod
Key Findings from the Evaluation of the Small Business Administration’s Loan and Investment Programs