SBA’s Capital Access Official Highlights New SBA Loan Program
Patrick Kelley, Senior Advisor in SBA’s Office of Capital Access, visited Cleveland on July 23rd to meet with SBA participating lenders and highlight the revised and expanded Small Loan Advantage (SLA) program. Studies continue to show that the volume of small dollar business lending has shrunk dramatically, and this scarcity of small dollar loans disproportionately impacts underserved communities. SLA has been redesigned to make it even easier for lenders to provide low dollar SBA guaranteed loans to the small business community. The key features of the revised and expanded SLA include the following: An increase in the maximum loan size from $250,000 to $350,000; Expansion to all SBA participating lenders; In closing and disbursing SLA loans, lenders will follow the same closing and disbursement procedures and documentation as it uses for its similarly-sized non-SBA guaranteed commercial loans.
The Cleveland District Office Continues to Promote its New & Start-Up Business Initiative
The New & Start-up Business Initiative, a joint effort of SBA’s Cleveland District Office, the Federal Reserve Bank of Cleveland, and the Ohio Small Business Development Centers to promote SBA lending to new (in business less than 2 years) and start-up businesses, continues to be a primary focus of the office. Two recent roundtables were held in Youngstown and New Philadelphia. Mahoning Valley Economic Development Corporation hosted the June 27th roundtable in Youngstown, while the Small Business Development Center at Kent State University Tuscarawas hosted the July 10th roundtable in New Philadelphia.
The roundtables brought together local lenders and economic development officials to brainstorm on ways to increase lending activity to new and start-up businesses. The general theme of the roundtables has been that lending to new and start-up businesses, while difficult, can be done in a prudent manner given proper due diligence that ensures the success of the entrepreneur so that jobs and wealth are created. An SBA loan guaranty, coupled with counseling by SBA’s resource partners (the Ohio SBDC and SCORE), can help make this type of lending a reality. Efforts made on this initiative seem to be paying off. SBA guaranteed loans to start-up and new businesses is tracking % higher in FY ’12 than similar period in FY ’11Click to edit this placeholder teClick to edit this placeholder text.
District Director Hosts Roundtable of Area Manufacturers
District Director Gil Goldberg hosted a roundtable of area manufacturing firms on July 25th. Director Goldberg convened the meeting to take the pulse and the health of small manufacturing firms in Northern Ohio. Representatives and the Federal Reserve Bank of Cleveland also participated in the discussion. Growth Capital Corp., an SBA Certified Development Company, also participated to highlight SBA’s 504 fixed asset finance program. The general consensus of meeting attendees was cautious optimism.