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New Bank Start-Ups:  Entrepreneurs Funding Other Entrepreneurs

New Bank Start-Ups: Entrepreneurs Funding Other Entrepreneurs

There has traditionally been a symbiotic link between new business ventures and new banking ventures. This article finds that the traditional link between small businesses and small banks – the small business loan – has weakened in recent years. While new banks have intensified their reliance on small business customers, small business borrowers have become less reliant on small banks for their credit needs. These findings are consistent with...

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