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Loan Terms and Loan Repayment Performance: The Experience with Minority Small Businesses

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  • Albert L. Page
  • Scott Cowen
  • Martin Cohen

Abstract

The purpose of this paper is to report the results of a study which examines the relationship between the structural characteristics of loans to minority small businesses and loan performance. The study represents an extension of research to the analysis of small business loan performance [2, 5, 7, 14]. As such it provides another perspective to understanding the performance of such loans by considering the relationships that exist between loan characteristics and loan performance. In particular, the finding regarding the relationship between the amount of the loan and loan performance provides important additional evidence relevant to a debate in the literature between Edelstein [5, 6] and Bates and Hester [3] about the effect of the loan size variable.

Suggested Citation

  • Albert L. Page & Scott Cowen & Martin Cohen, 1979. "Loan Terms and Loan Repayment Performance: The Experience with Minority Small Businesses," Entrepreneurship Theory and Practice, , vol. 4(1), pages 10-21, July.
    • Handle: RePEc:sae:entthe:v:4:y:1979:i:1:p:10-21
    DOI: 10.1177/104225877900400102
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    References listed on IDEAS

    as
    1. Page, Albert L. & Trombetta, William L. & Werner, Charles & Kulifay, Marilyn, 1977. "Identifying successful versus unsuccessful loans held by the minority small business clients of an OMBE affiliate," Journal of Business Research, Elsevier, vol. 5(2), pages 139-153, June.
    2. Joy, O. Maurice & Tollefson, John O., 1975. "On the Financial Applications of Discriminant Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(5), pages 723-739, December.
    3. Bates, Timothy M & Hester, Donald D, 1977. "Analysis of a Commercial Bank Minority Lending Program: Comment," Journal of Finance, American Finance Association, vol. 32(5), pages 1783-1789, December.
    4. Edmister, Robert O., 1972. "An Empirical Test of Financial Ratio Analysis for Small Business Failure Prediction," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(2), pages 1477-1493, March.
    5. Edelstein, Robert H, 1975. "Improving the Selection of Credit Risks: An Analysis of a Commercial Bank Minority Lending Program," Journal of Finance, American Finance Association, vol. 30(1), pages 37-55, March.
    6. Edelstein, Robert H, 1977. "Improving the Selection of Credit Risks: An Analysis of a Commercial Bank Minority Lending Program: Reply," Journal of Finance, American Finance Association, vol. 32(5), pages 1790-1794, December.
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    Cited by:

    1. Ella W. Van Fleet & David D. Van Fleet, 1985. "Entrepreneurship and Black Capitalism," Entrepreneurship Theory and Practice, , vol. 10(2), pages 31-40, October.

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