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Full-Text Articles in Finance and Financial Management
Federal Home Loan Bank Advances And Small Business Lending, Travis R. Davidson, W. Gary Simpson
Federal Home Loan Bank Advances And Small Business Lending, Travis R. Davidson, W. Gary Simpson
The Journal of Entrepreneurial Finance
Adequate credit availability for small businesses is an important public policy issue because small businesses are essential for employment and economic growth for the economy. The Gramm-Leach-Bliley Act of 1999 includes a provision that could potentially support financial institutions in the provision of credit to small businesses through the use of advances from the Federal Home Loan Bank (FHLB) system that are secured with small business loans. We explore the relation between FHLB advances to financial institutions and the provision of loans to small businesses. We find a positive link between the change in FHLB advances and the change in …