An uptick in the SBA's 7(a) loans has helped the agency's secondary market increase lending activity.
As of July 23, the average monthly loan volume settled from lenders to broker-dealers in the 7(a) secondary market has been $342 million, providing lenders with additional liquidity to increase lending, the SBA said.
America's Recovery Capital loans are also on the increase with the agency approving 8,070 ARC loans totaling over $261.4 million by 1,273 lenders. The ARC loans, which are available up to $35,000 with deferred payments and are interest free, have a 100% guarantee from the SBA, rather than the 90% authorized for other SBA-guaranteed loans.
The SBA said it has supported more than $29.4 billion in small business lending with the approval of $22.1 billion in American Recovery and Reinvestment Act loans from Feb. 17, 2009 to July 23. Rural businesses have received 24% of the loans followed by minority-owned (21%), women-owned (18%) and veteran-owned (8%).