SBA St. Louis Breaks its Own Loan Record

u s small business administration

NEWS RELEASE

PRESS OFFICE

 

Release Date: October 22, 2018

Release Number: SLDO 18-04

 

 

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SBA St. Louis Breaks its Own Loan Record

District Office Sees $10M Increase in Loan Dollars

 

St. Louis –The Small Business Administration’s St. Louis District Office has done it again. After posting its best loan year on record in fiscal year 2017, the SBA office exceeded last year’s loan production.

“One of our top goals is to get more capital into the hands of entrepreneurs who would otherwise not be able to access loans at reasonable rates,” said Maureen Brinkley, SBA St. Louis District Director. “We actually broke our own record by well over $10 million with SBA loan approvals in Eastern Missouri totaling $262 million.”

Entrepreneurial spirit remains strong in the St. Louis District where 348 SBA loans were made to help fund new businesses in Fiscal Year 2018. SBA loans to start-up businesses totaled $151 million, a 76% increase over the FY 2017 level. There were 100 lenders that participated in our loan guarantee programs which resulted in 534 SBA guaranteed loans supporting $314 million in loans to small businesses.

SBA loans continue to be a strong indicator of a growing economy and the strength of credit markets. Small businesses make immeasurable contributions to the economy and society and access to financing directly impacts their ability to start, grow and create new jobs. As a direct result of SBA-guaranteed small business financing throughout the St. Louis District this fiscal year, 2263 new jobs are being created, and 5846 jobs were retained.

"This year’s loan numbers are the direct result of increased outreach efforts by the St. Louis staff which included the use of the Lender Match online referral tool,” Brinkley said.That’s an important resource for small businesses that connects them with lenders who can offer them financing options,” she added.

The outreach efforts of the St. Louis District Office included approximately 430 visits and training events with lenders and small business owners throughout Eastern Missouri, raising awareness of SBA-backed loans and counseling programs. The smallest SBA loan in FY 2018 was $6,900 to a landscaping business and there were three loans of $5 million, which is the maximum size loan that SBA is authorized to guarantee, made to a retailer, a manufacturer and a self-storage unit business.

American Bank of Missouri led the district’s lenders this year making 26 SBA loans for a total of $25 million through SBA’s 7(a) loan program. The 2017 leader, Midwest Regional Bank, made 30 SBA loans totaling $20.8 million; Busey Bank originated 21 loans for a $17.8 million total; Live Oak Banking made seven loans totaling $13.9 million; and the Bank of Missouri made 30 loans totaling $9.7 million. The US Bank National Association, which originated 66 loans during FY 2018 made the most 7(a) loans in the St. Louis District ending the fiscal year with a $7.3 million total.

The top industries receiving funding in Eastern Missouri during FY 2018 were: accommodation and food service (64 loans of $44.4 million); Health care services (59 loans of $33.6 million); Retail (67 loans of $29.5 million); Construction (76 loans of $26.4 million); and Manufacturing (47 loans of $24.1 million).

The St. Louis District originated 66 loans through the SBA 504 loan program which was created to finance large equipment and real estate loans. For FY 2018, the district backed a total of $40.3 million dollars in SBA 504 loans. When including the third party loans that were originated in conjunction with the 504 loans, the total dollars going to businesses under the 504 program in the Eastern half of Missouri jumps to $92 million. The total loans supported between the 7(a), 504 and 3rd party loan programs combined is $313.7 million.

The district had nine active certified development companies that originated loans through the 504 program during FY 2018. The leading originators of 504 loans in the District were St. Charles County Economic Development Corporation with 31 loans totaling $17.6 million and the Columbia, Missouri based Enterprise Development Corporation with nine loans totaling $7.5 million.

Under the SBA’s Microloan program, the SBA lends money to non-profit intermediaries who then in turn loan the money to small businesses. Loan dollar amounts available to small businesses under this program range from $500 to $50,000. The St. Louis District Office’s sole intermediary, Justine Petersen, originated 251 loans totaling $1 million during FY 2018 in Missouri with an average loan amount was $4,100.

SBA continued the practice of waiving loan origination guarantee fees in FY 2018 for 7(a) Loans of $125,000 or less and on all SBA Express Loans to veterans. During FY 2018, there were 231 small loans totaling $17.2 million made in the St. Louis District where an aggregate of $245,000 of fees was waived allowing these entrepreneurs to retain this additional capital to start and grow their businesses. The district’s average loan size in FY 2018 was $491,000 compared to $417,000 in FY 2017.

The SBA recently announced significantly reduced loan origination fees for FY 2019 on loans up to $150,000 for businesses in rural and HUBZone communities.

For more information on how the SBA can assist small businesses in Eastern Missouri, contact the St. Louis District Office at 314-539-6600 or visit www.sba.gov/mo/stlouis.

 

                                                                  

 

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.