For the sixth consecutive year, the U.S. Small Business Administration (SBA) set records for the number and volume of the loans it guaranteed in its fiscal year 2007, which ended September 30th.The SBA approved 110,275 loans totaling about $20.6 billion under its two primary small-business loan programs (the 7(a) and 504) in 2007, compared with 107,233 loans worth $20.25 billion in 2006, according to a news release.
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.
About 99,600 loans were approved under the 7(a) loan guaranty program, which most often is used for working capital. That is up from 97,290 loans in 2006. Although the total number of loans increased, the dollar volume fell slightly to $14.29 billion from $14.52 billion.
The SBA approved 10,668 loans worth $6.31 billion under the 504 program, up from 9,943 loans worth $5.73 billion in 2006. Loans under this program are used for the purchase of real estate and fixed assets.
Nearly a third of all loans went to start-ups, and a third went to minority borrowers. In fact, loans to minority groups increased by 7 percent, with the largest increase coming in loans to African Americans, which increased by 23 percent, from 7,238 to 8,903. 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 under served areas amounted to more than 36 percent of total loan approvals.
No details were included in the press release about the new Patriot Express loan program targeting military veterans.
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Tags : SBA , Patriot Express , 7a loan , 504 loan , working capital , business loan , small business
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