Studies of Small Business Finance Commercial Bank Business Lending by Size of Loan

摘要

Brady uses the Federal Reserve Board’s Survey of Terms of Bank Lending to draw inferences as to the differences in commercial bank credit practices with small and large businesses. Throughout the study the assumption made is that small loans go to small businesses.nThe loan characteristics of prior commitment status, type of interest rate (e.g., floating or fixed), and the use of collateral are used to compare large and small loans. The study finds that small loans tended to be secured, had a fixed rate of interest, and were extended without a prior commitment. On the other hand an average large loan, had a floating interest rates, was unsecured, and was extended under a prior commitment.