SMALL BUSINESS CREDIT MARKETS AND RELATED POLICIES
This course examines the difficulty of assessing and quantifying market failures in the SBL market, which consists of small business borrowers (demanders) and lenders (suppliers).
It begins by reviewing various ways to define a small business, illustrating that there is no consensus definition of the demand side of the SBL market across government or industry.
The focus then shifts to describing the supply side namely the types of lenders that lend to small businesses, as well as their lending business models and practices.
The course subsequently attempts to identify credit shortages in certain SBL market segments such as, the market for small loans, loans for businesses with risky or unsuitable collateral, and loans for businesses in underserved communities.
The course also examines whether market failures associated with SBL pricing can be identified.
Finally, the course concludes by briefly discussing the Dodd-Frank Act requirement that the Consumer Financial Protection Bureau or CFPB for short collects data to facilitate the understanding of SBL market activity.