The draconian budget cuts facing the Small Business Administration have some lenders questioning whether the agency should stop guaranteeing real estate loans - arguing such credit does little for the economy.

"Real estate loans do not create a single job," complained a California lender, who asked not to be identified. "Buying real estate actually hurts the working capital of these companies."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.