WASHINGTON -
SBA reported it approved 110,275 loans totaling more than $20.6 billion under its two primary small business loan programs during the 12 months ending on Sept. 30, compared with 107,233 loans worth $20.25 billion in 2006. The combined outstanding loan balances in the 7(a) and 504 loan programs increased 6.5% to $66.7 billion.
The total does not include an additional $2.65 billion in venture capital funding provided by SBA-licensed Small Business Investment Companies to more than 2,000 small businesses.
Although SBA does not make direct loans to small businesses, the agency's use of its guaranty authority enables commercial lenders and Certified Development Companies to make loans to small businesses they otherwise would not have made.
Both primary loan programs combined set records this year. The 7(a) loan guaranty program-most often used for working capital-increased the number of loans from 97,290 in FY 2006 to 99,607 loans in FY 2007, although the dollar volume declined slightly from $14.52 billion to $14.29 billion. The Certified Development Company-or 504-program, for the purchase of real estate and fixed assets, provided 10,668 loans worth $6.31 billion, up from the 9,943 loans worth $5.73 billion in FY 2006.
Other facts about the SBA program:
* About one-third of all loans went to start-ups.
* About one-third of all loans went to minority borrowers.
* Loans to minority groups increased by 7%, with the largest increase coming in loans to African Americans, which increased by 23%.
* Smaller volume increases were recorded to business owned by Asian Americans, Native Americans and women, while loans to Hispanics declined slightly.
* Overall, loans to businesses in underserved areas amounted to more than 36% of total loan approvals.
For info: www.sba.gov.
