Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/245732
Authors: 
Kim, Mee Jung
Lee, Kyung Min
Earle, John S.
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14681
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We estimate the impact of the Community Reinvestment Act (CRA) on small business lending in lower-income neighborhoods. Using 2004-2016 panel data on census tracts, we apply a combined regression discontinuity and fixed effect method. We find that the number of small business loans increases by about 3 to 4 percent and the total dollar amount of small business loans by about 6 to 10 percent in tracts becoming treated by the CRA. The results are robust along many dimensions and suggest that the CRA has a positive impact on access to finance for small businesses in lower income areas.
Subjects: 
financial constraints
small business lending
community reinvestment act
lower income neighborhood
JEL: 
G28
G21
R58
Document Type: 
Working Paper

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