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SBA Sets New Small Business Lending Records

November 15, 2016 by Gary Stockton

 

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The U.S. Small Business Administration today announced year end lending numbers for fiscal year 2016, and showed record levels of small business lending nationwide through their 7(a) and 504 loan programs. The announcement also highlighted increases in lending to women-owned, veteran-owned and other forms of funding in underserved communities.SBA 7(a) loans can be used towards a wide variety of legitimate business purposes including working capital, fixed and intangible asset financing, as well as refinance and export support. 504 loans provide small businesses with long term fixed rate financing to acquire fixed assets for expansion or modernization.

Record Setting Loan Volume

The SBA approved more than 70,000 loans between the 7(a) and 504 loan programs in 2016, providing nearly $28.9 billion in financing to small businesses nationwide.

In FY16 the 7(a) program supported a record number of loans – more than $24.12 billion combined across 64,073 loans. Both the total number and dollar amount of 7(a) loans increased by 1 percent and 2.6 percent respectively over the previous year.

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Average Loan Amounts Decline

The average dollar amount of an SBA loan dropped for the third year in a row, in line with agency efforts to offer incentives to the production of smaller loans. Smaller loans of $350,000 or less are most often sought by startups, or businesses owned by members of under-served communities.

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Women-Owned Business

For the fifth consecutive year, 7(a) lending to women-owned businesses (both majority and minority owned) increased in total dollar and volume. 2016 lending was nearly $7.3 billion nationwide, an increase of $253 million compared to 2015.

Exports Increase

SBA also reported a record setting year guaranteeing more than 1,800 small business export loans, supporting more than $1.5 billion in financing to small business exporters.

You can find a full breakdown of SBA’s year end lending report on their web site:

https://content.govdelivery.com/accounts/USSBA/bulletins/17271ef

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