For years after the financial crisis it was difficult for many small businesses to obtain…
For years after the financial crisis it was difficult for many small businesses to obtain credit. Fortunately, this is no longer the case.
Indeed, according to the U.S. Small Business Administration, small business lending is way up, and growing steadily.
In fiscal year 2017 lending numbers showing increasing loan levels in small business lending through the 7(a) and 504 loan programs, as well as increases in lending to women, veterans and emerging communities.
SBA approved over 68,000 loans in the 7(a) and 504 loan programs in FY17. These programs provided over $30 billion to small businesses.
Its flagship loan program, referred to as 7(a), provides small businesses with guaranteed loans covering the vast majority of small business needs including working capital, fixed and intangible asset financing, as well as refinance and export support through term and revolving loans.
In FY17, the 7(a) program supported a consistent number of loans — more than $25.44 billion combined across 62,430 loans.
The SBA continues to streamline and improve access to its loan program for small loans and emerging communities, delivering more than $5 billion in smaller loans of $350,000 or less in FY17.
504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets, and are available through Certified Development Companies (CDCs), SBA’s community-based partners. In FY17, the 504 program remained at zero subsidy, and grew to $5 billion in loan volume.
There has been yearly growth in SBA’s loan programs, reflecting the important role of its lending partners.
In FY17, SBA added 241 new lenders that have contributed to a healthy loan portfolio and one of the lowest loss rates in the SBA’s history.
Find out more at www.sba.gov.