SBA lending breaks record again

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U.S. Small Business Administration (SBA) lending, both nationally and in Colorado, reached all-time record levels during fiscal year 2015, the year ending Sept. 30.

In El Paso County, the SBA gave 141 loans that totaled more than $39 million.

Most of those came from the U.S. Bank National Association, which made 35 loans for more than $3 million. Wells Fargo made 27 loans totaling nearly $6 million. The Central Bank and Trust made 19 loans totaling $7.8 million. The Hanmi bank made seven loans that totaled more than $4 million to businesses in El Paso County.

In Colorado, 1,754 7(a) and 504 loans, worth $701 million, were approved during the year, surpassing last year’s record level by 313 loans and $47 million.

Nationally, the agency approved 63,000 7(a) loans totaling $23.6 billion, an increase of 22 percent in number of loans and 23 percent for total dollars over the previous year. The 504 program saw 5,787 loans approved worth $4.3 billion.

“America’s small businesses pack a major economic punch, creating two out of every three net new private-sector jobs in Colorado and across the nation,” said Edward Cadena, SBA’s Colorado District director. “These record loan numbers reflect highly effective collaboration between SBA’s outstanding staff and its partners. Three years in a row of record lending bode well for continued economic growth in this great state. Small businesses sustain our local tax base, provide employment and support our community organizations.”

The following is a breakout of the FY 2014 Colorado lending numbers:

  • 1,585 7(a) loans valued at $581 million;
  • 169 loans worth $120.4 million were approved through the 504 loan program;
  • 322 loans worth $111 million went to minority-owned small businesses;
  • 324 loans worth $110.2 million went to women-owned businesses;
  • 97 loans worth $35.6 million were approved for veteran-owned businesses;
  • the construction and retail trade industries received the greatest number of loans;
  • loans worth $12.6 million were less than $50,000 each;
  • 871 loans worth $43.3 million were less than $150,000 each; and
  • 17 loans to exporters worth $13.8 million;

The 7(a) program is designed to provide small businesses with the most comprehensive type of financial assistance to cover the vast majority of business expenses, such as short and long-term working capital, exports, and refinancing existing debt under certain conditions. The 504 loan program provides long-term, fixed financing for real estate and equipment.

For more information about the SBA’s loan programs and other financial assistance and services, see sba.gov.

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