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Measuring the Likelihood of Small Business Loan Default: Community Development Financial Institutions (CDFIs) and the use of Credit-Scoring to Minimize Default Risk1
By Andrea Coravos Community development financial institutions (CDFIs) provide financial services to underserved markets and populations. Using small business loan portfolio data from a national CDFI, this paper identifies the specific borrower, lender, and loan characteristics and changes in economic conditions that increase the likelihood of default. These results lay the foundation for an in-house […]
