Executive Summary of Dissertation on Gender, Race, and Credit Rationing of Small Businesses

Abstract

Using data from the 2003 Survey of Small Business Finances, this dissertation examines the extent to which credit rationing occurs in the small business credit market in the U.S. Women- and minority-owned businesses are studied to determine whether there is significant difference in their loan denial (type II credit rationing) compared with male and white owners and how this affects their likelihood of applying for a loan. Also, type I credit rationing is examined as well as loan sizes using simultaneous equation model. We find, in general, women and minorities are rationed more than male and white owners.