Posts

SBA Lending down 36% for Fiscal ’09

/in /by

The “Wall Street Journal” reported that the number of SBA guaranteed 7(a) loans was down 36% in fiscal 2009, totaling $9.3 billion, which was $3.4 billion less than the previous fiscal year. Reasons for the drop-off in SBA loans include scarce credit, and the riskier nature of small business loans, which hit a 12% failure rate in 2008, up from 2.4% in 2004, according to the Coleman report.    SBA loans did rebound in September 2009, which the agency credited to stimulus measures, including an increase in the SBA’s maximum guarantee from 80% to 90% of the loan amount.

SBA 7(a) Loans Down 18% vs. Year Ago

/in /by

The Small Business Administration backed about 40,000 of its 7(a) loans in the first quarter of 2008, down 18% from the same period one year earlier. The drop off in the SBA’s express loan program was even greater, at 30%. Eric Zarnikow, associate administrator for capital access at the SBA attributes the decline to a “weaker economy.” Congresswomen Nydia Velazquez (D-NY), chairwoman of the House Small Business Committee, disagrees, saying the SBA’s declining loan volume can’t be attributed entirely to the bad economy. Says Velazquez, “it is important to remember the SBA’s loan program was created to kick in during tough times.”

SBA 7(a) Loans Down 18% vs. Year Ago

/in /by

The Small Business Administration backed about 40,000 of its 7(a) loans in the first quarter of 2008, down 18% from the same period one year earlier. The drop off in the SBA’s express loan program was even greater, at 30%. Eric Zarnikow, associate administrator for capital access at the SBA attributes the decline to a “weaker economy.” Congresswomen Nydia Velazquez (D-NY), chairwoman of the House Small Business Committee, disagrees, saying the SBA’s declining loan volume can’t be attributed entirely to the bad economy. Says Velazquez, “it is important to remember the SBA’s loan program was created to kick in during tough times.”

SBA Borrowers Seeing Higher Fees

/in /by

An $80 million appropriation to cover the cost of issuing SBA guaranteed loans was removed from the congressional budget two years ago. While SBA 7a guaranteed loans continue to be made, the eliminated appropriation has mean loan caps, and higher fees place on lenders and borrowers, Keith Loria writes for the “Westchester County Business Journal.” Nonetheless, the number of 7a loans initiated in Connecticut has hit 1,500, bettering the previous annual high of 1,200, helped by the SBA Express program, which offers much smaller loans so they can get processed more quickly.