Abstract
ABSTRACT This study investigates the influence of the Community Reinvestment Act (CRA) on Small Business Administration (SBA) lending in various U.S. urban areas. Focusing on central cities, inner-ring, and outer-ring suburbs across seven major metropolitan statistical areas, it employs a regression discontinuity design to analyze CRA’s effect on neighborhoods with median family incomes at or below 80% of the area’s median. Results show that CRA significantly increases SBA lending in inner-ring suburbs but not in central cities or outer-ring suburbs, indicating a geographically varied impact. This research underscores the spatial differences in CRA’s effectiveness, suggesting a need for more tailored strategies to improve SBA lending in diverse urban settings.
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