Studies of Small Business Finance: Relationship between Commercial Bank Loan Size and Size of Borrower

摘要

Due to the overall lack of information on the size of commercial borrowers, much of the research in the area of small business financing is done under the assumption that loan size has a close correlation to the size of the borrower. The study uses the data from two surveys, the 1972 Business Loan Survey and the 1968 St. Louis Survey, to discuss the assumption that loan size is a valid indicator of the size of the borrower. The author considers factors that would affect the size relationships such as: any prior commitment for the loan, the lender's participation in a group financing arrangement, and/or the size of the lending bank.