SBA Announces 4th-Highest Loan Total in Nebraska History in FY 2013, Critical to Small Business Growth in State

Having trouble viewing this email? View it as a Web page.

Bookmark and Share

Omaha, NE – The number of small business loans financed through the SBA proved crucial to start-up and existing small business owners across Nebraska by providing needed access to capital thanks to the fourth-highest loan number in the state’s history in FY 2013, which ended September 30. 

The SBA approved 402 loans for $122.6 million in loan guarantees through nearly 80 banks, credit unions and certified development companies, the fourth-most loans in Nebraska history. Those loans ranged from $7,700 to $5,000,000 with an average dollar amount of $305,173, and more than half were for $150,000 or less.

As a direct result of SBA-guaranteed small business financing throughout the state this fiscal year, more than 1,600 new jobs are being created in Nebraska, and nearly 3,100 jobs are being kept on payrolls.  According to the SBA’s Office of Advocacy, half of all jobs in Nebraska are from companies with fewer than 100 employees.

Overall, the pace of SBA loan-making in Nebraska remains 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.

“The strength and vitality of Nebraska's economy always has been linked to the success of our small businesses. We're proud to support the men and women who get up every day, flip the storefront signs from closed to open, and make our state run,” said SBA Nebraska District Office District Director Leon Milobar.  “It's especially true in today’s economy that small business owners not only are the backbone of creativity and production, but are the major source of new job creation in our state. We've also seen small businesses have done a great job obtaining the critical financing they need to have the ability to respond and adapt quickly to the ever-changing economic climate.”

The top five small business industries receiving SBA-guaranteed financing in Nebraska were accommodation and food services ($20.2 million), retail trade ($18.9 million), health care and social assistance ($15.1 million), manufacturing ($12.1 million) and construction ($11.7 million).

In a strong sign of confidence in Nebraska’s entrepreneurial economy, 45 percent of SBA loan approvals in Fiscal 2013 went to fund new businesses.  Across the nation, less than 30 percent of SBA-backed loans were made to start-up companies. Most of SBA financing went to small businesses located in urban areas (77 percent), with 92 loans going to small businesses in rural regions of the state.

Veteran-owned small business owners in Nebraska also took advantage of the SBA’s Patriot Express loan program in increased numbers, with a 100 percent jump in loan approvals, and a 360 percent increase in dollar volume, from $702,000 in Fiscal 2012 to $3.2 million in Fiscal 2013.

Great Western Bank made 38 SBA-guaranteed loans, more than any other lender in the state with more than $18 million in volume. US Bank followed closely behind with 35 loans for $6.5 million in volume.

In particular, commercial lenders took advantage of the SBA’s enhanced Small Loan Advantage program for their small business customers.  The SBA approved 82 of these loans in the Cornhusker State, a jump of more than 250 percent over last year, the second-highest number in the four-state region (Nebraska, Kansas, Missouri and Iowa), and 15th-most of the 66 districts in the agency across the country. The total loan volume this year through this program to small businesses was $11.2 million.

The SBA’s 504 loan program, designed to provide attractive, fixed interest rate loans on large equipment and real estate projects, enjoyed another successful year with 42 loans for $23.7 million going to Nebraska businesses. With the 504 program, the SBA works with a Certified Development Company (CDC), a private, nonprofit corporation to provide financing through this program to small businesses. Nebraska’s CDC’s are the Nebraska Economic Development Corporation and Community Development Resources. Both are headquartered in Lincoln.

In addition to the $122.6 million in loan guarantees, Nebraska’s SBA supported microlenders; the Rural Enterprise Assistance Project, Community Development Resources, West Central Development District and the Omaha Small Business Network combined to make 98 loans for $1.2 million dollars in Fiscal 2013. Their average loan of just over $13,000 assured access to capital was available to meet even the smallest financing needs.