SBA is Backing Business Loans Quicker Now Than in 2012
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UPDATED: May 7, 2013
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Small Business Administration (SBA) loan lending is thawing. This will prove a boon to businesses seeking business loans and entrepreneurs seeking financing to launch new companies.
According to the actual data, SBA lending has increased and heralds signs of economic recovery. The data shows that business loans to minorities, women and startups both increased in quantity and in total money lent.
David J. Hall, Public Affairs Specialist at the SBA, told loans.org that “Overall, the pace of SBA loan-making is a healthy sign for the economy and the credit markets and is one of the foundations for ensuring the availability of financing to small businesses trying to establish themselves, grow and create new jobs for Americans.”
Hall also said that the numbers for 7(a) loans for women, minorities and startups have exceeded the numbers of 2012. 7(a) loans, which are used for purchasing assets and working capital, saw an increased approval rate leading to more than $9.4 billion being lent out; a sizable contribution to ongoing efforts at stimulating economic growth and recovery.
“The pace of SBA-backed lending remains strong, providing capital to small businesses,” said Hall. “More loans and more dollars were loaned in the first half of fiscal year 2013 than the same period a year ago, a year in which SBA recorded the second highest loan volume in the agency’s history. Overall, lending continues at a solid pre-recession pace, some weeks more, some weeks less.”
The SBA’s 7(a) and 504 loan approvals reached a combined total of $21.8 billion, compared with $24.48 billion in approvals for 2011. 2012 was the SBA’s second biggest year ever in terms of dollars loaned out.
“Lending at the end of the first half of Fiscal Year 2013 was ahead of the pace at the same point a year ago by more than 13 percent,” said Hall. “Loan approvals reached $10.7 billion.”
Future data on the SBA’s loan amounts will show how well the economy continues to recover and how easily it is for borrowers to access business loans guaranteed by the SBA.
(Interview conducted by Isaac Juarez)