Federal Nonfarm Business Credit Assistance: An Analysis of Disbursements to RuralAreas

摘要

The Federal Government directs credit to many parts of the economy to meetspecific political, social, or economic goals. One goal is the development of small businesses. The establishment and growth of local small businesses are often central to the development of rural areas. For this reason, Federal Government credit programs aimed at small businesses have the potential to play a role in rural development. The Federal Government supports business development by providing credit assistance. Although the government uses both direct and indirect programs to disseminate credit assistance, the study focuses on direct programs over the period 1983-89. Rural counties received 27 percent ($6.3 billion) of the total $23.5 billion given in direct assistance. Rural areas received more funding than urban areas when measured on a per capita or per business basis. Low-income areas received less assistance per capita (more per business). Persistent poverty counties received below-average amounts by whatever measure is used.