An Assessment of Small Business Administration Loan and Investment Performance

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Abstract

This report presents customer satisfaction outcomes and a limited number of other indicators based on a sub-sample of the same assisted firms that were targeted in the more rigorous, quantitative performance analyses (Brash and Gallagher, 2008). Analyses of the Survey of Assisted Businesses found only minor differences between 504, 7(a), and MicroLoan recipients in overall satisfaction indicators, but more substantial differences in uses of loan proceeds and other sources of financing. Most respondents were satisfied, although overall satisfaction was apparently lower in the SBIC program.

Introduction

Despite major problems with producing usable contact information from the sample, recipients of SBA Section 7(a) and 504 guaranty loans were successfully surveyed in sufficient numbers for analysis. Completed surveys from recipients in the SBIC and MicroLoan programs are fewer, and results should be treated with caution. Our final tally of completed surveys was 209 for the 504 program, 188 for Section 7(a), 124 for MicroLoan, and 108 for SBIC. Sampling strategy, survey methodology, and response rates are detailed in the Section IV, Technical notes. Percentages cited in the text are based upon the number of businesses that responded to specific survey items, unless otherwise noted.

We found only minor differences between 504, 7(a), and MicroLoan recipients in overall satisfaction indicators, and (not surprisingly) more substantial differences in uses of loan proceeds and other sources of financing. Overall satisfaction was apparently lower in the SBIC program, but the small sample size and difficulty surveying reduces our confidence in those results.

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The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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