SBA Sets Lending Records Nationwide and in Utah

Small business lending activity under the U.S. Small Business Administration’s (SBA) 7(a) Loan Guaranty Program reached another nationwide record in Fiscal Year 2014 – the period Oct. 1, 2013 - Sept. 30, 2014. SBA Administrator Maria Contreras-Sweet announced that the agency approved 52,044 7(a) loans for $19.19 billion, an increase of 12 percent in number of loans and a 7.4 percent in dollar amount over Fiscal Year 2013. In Utah, SBA District Director Stan Nakano reported a Fiscal Year 2014 total of 1,252 7(a) and 504 loans, worth $480 million, surpassing the previous year’s record level by approximately $72 million.
 
“As our economy continues to grow and recover, small businesses are the essential fuel to that continued growth,” said Contreras-Sweet. “Thanks to the hard work and outreach by our lending partners, SBA staff, and our resource partners, as well as the small business owners themselves, we have been able to put more capital into the hands of our nation’s entrepreneurs.”
 
“America’s small businesses pack a major economic punch, creating two out of every three net new private-sector jobs in Utah and across the nation,” said Nakano.  “These record loan numbers reflect highly effective collaboration between SBA and its partners.  Never before, have we had a year where we approached close to a half a billion dollars in SBA guaranty lending to Utah companies. Small businesses sustain our local tax base, provide employment opportunities, and support our community organizations.” 
       
   The following is a breakout of the FY 2014 Utah lending numbers.
  • * 1,049 loans valued at $341.8 million were approved through the 7(a) program
  • * 203 loans worth $138 million were approved through the 504 loan program.  
  • * 114 loans worth $37.8 million went to minority-owned small businesses
  • * 161 loans worth $43.7 million went to women-owned businesses
  • * 45 loans worth $17.1 million were approved for veteran-owned businesses
  • * The Retail Trade, Health Care, Construction Manufacturing and Accommodation industries received the greatest number of loans
  • * 395 loans worth $11.3 million were under $50,000 each
  • * 356 loans worth $23.3 million were under $150,000 each
  • * 3,487 total loans worth a record $1.43 billion were approved in the six-state Region VIII – which includes Colorado, Wyoming, North Dakota, South Dakota, Montana, & Utah.  In FY 2014, the region saw its total loan dollars approved increase by $103 million over the previous year.  
      
The 7(a) program is designed to provide small businesses with the most comprehensive type of financial assistance to cover the vast majority of business expenses, such as short and long-term working capital, exports, and refinancing existing debt under certain conditions. The 504 loan program provides long-term, fixed financing for real estate and equipment.
             
SBA had been authorized $17.5 billion in the FY 2014 lending program.  It became clear that lending would exceed that amount; therefore the agency secured an increase for the 7(a) program in the Continuing Resolution that was approved in mid-September. Other SBA loans that did well in fiscal 2014 were those $150,000 and under. Spurred by the fee relief implemented at the beginning of the fiscal year (fees were set to zero), these loans saw an increase of 23 percent in number of loans (30,675) and 29 percent in approved dollars ($1.86 billion) over fiscal year 2013 (24,923 and $1.44 billion respectively). Other successes nationally include a 3.7 percent increase in the number loans, and 12 percent growth in dollars, made to small business exporters. 
 
For more information about the SBA’s Loan Programs and other financial assistance as well as services, please visit http://go.usa.gov/GQh3.