SBA's Region IX leads the nation in FY 2012 with $6.7 billion loaned

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NEWS release

PRESS OFFICE

Release Date:

October 10, 2012

Contact:

Christopher Lorenzana (714) 560-7453

Release Number:

13-01

Internet Address:

http://www.sba.gov/news

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 Americans.  

"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 processed online.

The reengineered 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.

SBA’s streamlining 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 FY 2010. 

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.   

 

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