Using micro-level data on the entire population of business loans of a bank-based economy, we empirically test some of the core predictions of the SME financing literature, examining banks' lending specializations in firm size and lending technologies. Rejecting the conventional belief that...

We use variation in the access to a government credit certification program in Portugal to estimate the sensitivity of SMEs investment and employment to the cost of debt financing. Targeted firms have access to a credit certification and loan guarantees. We use a multidimensional regression...