The Small Businesses Loans Act was designed
to increase the flow of funds for capital purposes
from the banking system to small firms in the Canadian
economy. This study examines the need for this legislation.
The major sources of funds for small business
are discussed and the question of the adequacy of these
financing facilities is considered. This part of the
study concludes that the 'MacMillan Gap' in Canada
has been narrowed in the post-war period, but not yet
closed.
The study then examines the effectiveness of
the Small Businesses Loans Act in bridging the remaining
gap. The legislation, and the record of
borrowing under the Act are reviewed. Particular
attention is directed to the effects of monetary
policy on the volume of lending under this Act. The
study also includes an examination of the experience
of a sample of borrowers, their characteristics, the purposes for which loans were obtained and banking
practices with respect to this lending program.
The conclusions of the study suggest that the
Small Businesses Loans Act has fulfilled a useful
role in improving the financial facilities available
to small business despite a number of deficiencies
in the legislation. It is also suggested however
that the need for this legislation has largely been
removed by recent amendments to the Bank Act. / Business, Sauder School of / Graduate
| Identifer | oai:union.ndltd.org:UBC/oai:circle.library.ubc.ca:2429/41716 |
| Date | January 1967 |
| Creators | Dewhirst, Gordon Hedley |
| Publisher | University of British Columbia |
| Source Sets | University of British Columbia |
| Language | English |
| Detected Language | English |
| Type | Text, Thesis/Dissertation |
| Rights | For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use. |
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