In general, small businesses that use the loan guarantee pro-gram are smaller, have higher credit risk, and are less profitable, so the sample from CGCs mostly includes this type of firm.
Further-more, the firm data only start to accumulate after bank transactions commence, so the database may exclude many young firms.
In addition, the CRD omits firms that do not borrow from financial institutions because the data sample comprises only bank clients.
In sum, the CRD includes firms with high or low credit risk and profitable and unprofitable firms.
However, the CRD data tends to exclude larger and younger small businesses and those without a bank loan history.