Unravelling the impact of the Community Reinvestment Act on SBA lending

Insights from a regression discontinuity design analysis

Bibliographic Data

ID6439140
AuthorsJoowon Jeong (0000-0001-9496-9995, Kyung Hee University, corresponding author)
Year2023
Volume47
Issue6
Pages2282-2300
Publication date2023-11-21
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Urban Affairs (JOURNAL)
Journal identifiersISSN: 0735-2166 • E-ISSN: 1467-9906
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/07352166.2023.2279596
OpenAlexW4388862210
LanguageEN
Citations received1
References cited31

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.KEYWORDS: Community Reinvestment ActSBA lendingcentral cityinner-ring suburbsouter-ring suburbs AcknowledgmentsThis paper has been revised and developed from a section of my PhD dissertation. I would like to express my heartfelt gratitude to my advisor, Dr. Cathy Liu, for her invaluable guidance and support throughout this journey. Additionally, my sincere thanks go to the committee members for their insightful feedback and unwavering encouragement. Their expertise and dedication have been instrumental in shaping this work. Furthermore, I extend my appreciation to the four reviewers whose constructive comments and suggestions greatly enriched the quality of this paper.Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationNotes on contributorsJoowon JeongJoowon Jeong is an assistant professor in the Department of Public Administration at Kyung Hee University. Her primary research interests include the utilization of AI and Big Data technologies to address urban challenges, including urban shrinkage, smart city initiatives, entrepreneurship, shifts in employment and labor markets, and spatial accessibility to both governmental and non-governmental services. Additionally, she holds a keen interest in urban development issues within an international scope, particularly in Asia. Her work has been published in journals like Cities, City & Community, The Social Science Journal, Nonprofit Voluntary Sector Quarterly, and The Journal of Policy Studies, among others

Business · Community Reinvestment Act · Constructive · Geography · Gratitude · Metropolitan area · Political science · Public relations · Regression discontinuity design · Sociology · Computer Science · Housing Market and Economics · Housing, Finance, and Neoliberalism · Local Government Finance and Decentralization · Psychology · Social Psychology · Finance

Tools

Open DOI