SBA Loan Dollars in Region IX reached $6.68 billion in FY 2012, out- performing FY 2011 by more than $265 million
Over 8820 loans were made to small businesses and entrepreneurs throughout California, Arizona, Nevada, Hawaii and Guam
San Francisco- The SBA's Region IX office announced today that over 8,820 SBA loans were approved in FY 2012 for a total of more than $6.68 billion, outperforming FY 2011 activity by more than $265 million. Region IX led the way last year and this year in terms of SBA loan dollar volume, enabling the SBA to post the two highest dollars loaned totals in agency history.
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
"The increased level of activity in SBA lending in Region IX is a great indicator that we're gaining momentum and shows our economy is getting stronger on a daily basis," said SBA Regional Administrator Elizabeth Echols. "The increase of more than a quarter of a billion dollars loaned in the region should encourage more entrepreneurs and small business owners to seek the capital they need to start, grow and succeed. As they do that, more and more jobs will be created."
Over the past year,
SBA began streamlining and simplifying many of the loan programs in order to
provide more access and opportunity for both lenders and small businesses. As part of this effort, SBA encouraged
lenders to use more of their own paperwork and the agency’s updated processing
systems, so that more than 80 percent of its loan applications can now be
CAPLines loan program recorded an increase of almost 400 percent in loan volume
and 249 percent in dollar volume. The
revamped program, which provides working lines of capital to small businesses
such as manufacturers and government contractors, jumped from 108 loans and $118
million in FY 2011, to 532 loans and $410 million nationally in FY 2012.
of the Small Loan Advantage (SLA) and Community Advantage programs also
produced encouraging results. The
Advantage loan programs entice lenders to make low-dollar loans, which are an
important tool for small businesses.
Community Advantage jumped from 15 loans and $2.1 million in FY 2011, to
188 loans and $25.2 million in FY 2012, an 11-fold increase in both the number
of loans and dollar amount. As of the end of May 2012, SLA had a volume of 188
loans for a little over $20 million. The program ended the fiscal year with 820
loans for $105.6 million. Nearly 80 percent of the year’s SLA loans came after SBA
implemented simplified processes on June 1.
These efforts, among
other loan enhancements, have resulted in nearly 1,300 lenders returning to SBA
lending, and have opened up more points of capital access for small businesses
wherever they do business.
During the fiscal
year, which ended Sept. 30, SBA loan approvals supported $30.25 billion (53,848
loans) to small businesses in its two main loan programs, 7(a) and 504, compared
to $30.5 billion (61,689 loans) in FY 2011 and $22.6 billion (60,771 loans) in
The totals for FY 2012
include 44,377 loans, $15.15 billion approved under the agency’s largest loan
program, the 7(a) General Business Loan program, and 9,471 loans supporting $15.09
billion in small business lending under the 504 Certified Development Company
program. The “supported” amount for 504
loans includes the SBA-backed portion and the third-party loans made by commercial
lenders as part of the funding package.
For more information
about these and other SBA programs, visit the SBA website at www.sba.gov, or
contact your local SBA field office. You
can find contact information for your local SBA office at http://www.sba.gov/localresources/index.html.