An examination is made of the conventional wisdom that small buiness loans are riskier and consequently bear a higher interest rate than large business. Results indicte that the conventional wisdom is accurate but also that small business loans are more profitable for the bank.
bank holding companies, deregulation, credit financing, small business
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Churchill, Neil C. and Lewis, Virginia L., "Small Business Bank Lending: Both Sides are Winners" (1984). Historical Working Papers. 71.